Russian Stock Market Sees Mixed Performance Amid Disappointing Financial Report

Strategic Insights -

The Russian stock market displayed a mixed performance on Friday, with Norilsk, Rostelecom, and Sberbank experiencing gains, while the rest of the blue chips, led by Gazprom, declined due to a disappointing financial report. As the market awaited the release of new unemployment figures from the US, investor confidence was cautious, with experts predicting a potential upward push after the release. The record high oil and metals prices continued to support the market, with WTI crude reaching $75 per barrel.

Key Takeaways:

  • MMC Norilsk Nickel (RTS: GMKN) rose 0.2% to 3,556.10 rubles a share.
  • Rostelecom (RTS: RTKM) grew 0.2% and 3.2% respectively.
  • Sberbank (RTS: SBER) common shares rose 4% to 49,910 rubles a share, while its preferred shares increased 4.1% to 785.1 ruble a share.
  • UBS Investment Bank increased its recommendation for Sberbank common shares to buy from hold and increased the forecast price to $2,800 a share from $1,650.
  • Gazprom (RTS: GAZP) fell 1.8% to 280 rubles a share due to a 49% growth in IAS net profit, less than the predicted 346.7 billion rubles.
  • Market players were cautious before the weekend and the release of new US economic statistics, which could influence the market.
  • Experts predicted a potential upward push in the market after the release of new US unemployment figures.
  • Record high oil and metals prices continued to support the market.

Statistics:

  • By 12:30 p.m. Moscow time, the RTS index fell 0.04% to 1535.23, and the MICEX fell 0.1% to 1365.89.
  • Sberbank common shares rose 4% to 49,910 rubles a share.
  • Rostelecom shares grew 0.2% and 3.2% respectively.
  • Gazprom's IAS net profit grew 49% to 311.125 billion rubles in 2005.
  • WTI crude reached $75 per barrel.
  • The predicted U.S. unemployment figure was 175,000.
  • The inflow of capital from funds that invest in Brazil, India, China, and Russia increased to $117 million from $100 million.

Sources:

  • (Interfax), "Norilsk, Rostelecom, Sberbank posting gains, Gazprom dips on financial report"
  • UBS Investment Bank, recommendation for Sberbank common shares
  • Emerging Portfolio Fund Research, outflow of capital from funds specializing in emerging markets
  • NetTrader.ru, Alexander Potavin
  • Olma, Alexei Bystrov