Russian Stock Market Consolidates Amid Mixed Trends

Russian blue chip stocks fell 0.7% to 3.2% by the end of the trading day, yet the RTS index managed to climb 0.14% to 1627.51, while the MICEX stock index dropped 1.09% to 1454.64. Norilsk Nickel, Mosenergo, and Sberbank stood out for different reasons, with Norilsk hitting an all-time high of 3,559.99 rubles on the MICEX and closing at 3,466 rubles, up 0.4%. Sberbank's net profit soared 260% to 65.8 billion rubles in 2005, sending its shares up 0.8% to 42,930 rubles on the MICEX and 1.8% to $1,580 on the RTS.

Key Takeaways:

• Norilsk Nickel's shares rose 4.5% to $128.5 on the RTS, backed by the nonferrous metals market rally, while its ADRs climbed 5.2% in London.
• Sberbank's shares increased 0.8% to 42,930 rubles and 1.8% to $1,580 on the RTS, after its net profit jumped 260% to 65.8 billion rubles in 2005.
• Mosenergo's shares added 1.5% to 5.12 rubles a share on the MICEX and 3.9% to $18.7 for ADRs, with dealers speculating that Gazprom might be buying shares.
• The market is showing a bearish trend ahead of the May holidays, with investors expected to take profits and close long positions.
• Despite the decline in oil prices, Russian oil companies are expected to continue profiting, with healthy forex revenue insulating them from a severe correction.
• Investor sentiment remains mixed, with analysts predicting a lateral trend for two-thirds of the market until the May holidays.

Statistics:

• RTS index closed at 1627.51, up 0.14%.
• MICEX stock index dropped 1.09% to 1454.64.
• Norilsk Nickel's shares climbed to an all-time high of 3,559.99 rubles on the MICEX.
• Sberbank's net profit surged 260% to 65.8 billion rubles in 2005.
• Norilsk Nickel's ADRs rose 5.2% in London and stabilized at $130.1 on Tuesday.
• Mosenergo's ADRs increased 3.9% to $18.7.

Sources:

• Interfax, April 25
• RTS, April 25
• MICEX, April 25
• MDM Bank, April 25
• Antanta Capital, April 25
• Aton-Line, April 25
• Region, April 25