Blue chips kicked off in the black on Monday after the US Fed unexpectedly cut the discount rate from 6.25% to 5.75% on Friday. However, most gains were erased by the final bell, since market players opted for profit-taking and liquid names closed in negative territory. The Feds policy makers opted to take necessary measures to mitigate the negative impact of the mortgage crisis on the US economy which increases the likelihood of a reduction in the base interest rate from the current 5.25% at the September meeting. As a result, European and Asian markets drifted north on Monday. However, the domestic equity market did not follow suit and landed in the red. A downturn was also attributable to lower crude prices on expectations that Hurricane Dean will pass by the main oil producing regions in the Gulf of Mexico. The RTS Index lost 0.46% to close at 1,852.15 and the MICEX Index eased 0.97% to 1,621.98. The price of Brent crude fell to $69.70 a barrel which pushed down Russian oil and gas stocks on MICEX. Tatneft lost 2.32%, SurgutNG tumbled 1.59%, Gazprom receded 0.95%, Lukoil eased 0.84%, Rosneft dipped 0.63% and Gazprom Neft inched down 0.22%. Other blue chips largely landed in the red on MICEX. NorNickel lost 0.24%, Sberbank dipped 1.70%, UES declined 0.96% and Rostelecom eased 0.52%. However, MTS inched up 0.20%. Market turnover amounted to $43.11 mln on benchmark RTS and $6,154.77 mln on MICEX.
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[Source: Russian Stock Market Blog]
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