Monday, August 20, 2007

Daily Review. 17th August, 2007

Blue chips again kicked off in the red on Friday. This time around, Asian stock markets dragged domestic equities down. The Japanese Nikkei 225 Index plunged over 5%. In the afternoon, Russian shares posted robust gains on news that the US Fed unexpectedly cut the discount rate by 0.5%. By the final bell, the RTS Index gained 2.22% to 1,860.70 and the MICEX Index rose 2.40% to 1,637.81. Crude futures gained 2%, which drove up oil stocks. Tatneft shot up 4.63%, Rosneft jumped 2.12%, Lukoil gained 2.05%, Gazprom advanced 1.95% and Gazprom Neft closed 1.33% higher. Sberbank shares spiked 4.74% on news of the Feds discount rate cut. However, VTB lost 0.34%. UES underperformed the market, with commons inching up a mere 0.33% on MICEX and prefs tumbling 0.16%, since these stocks have seen moderate losses compared to other domestic equities in recent days. Other liquid names closed in the black on MICEX. MTS climbed 1.49%, Rostelecom surged 4.25% and NorNickel rose 1.37%. Market turnover picked up to $74.32 mln on benchmark RTS and $8,741.46 mln on MICEX.

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[Source: Russian Stock Market Blog]

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