Friday, August 10, 2007

Daily Review. 9th August, 2007

On Thursday, most liquid names headed north on bullishness in the United States Wednesday. However, throughout the session domestic names reversed and drifted lower along with global exchanges. The primary reason for a decline was the news that French investment bank BNP Paribas is unable to calculate the value of US-securitized hedge funds it manages due to the lack of liquidity in mortgage papers. By Thursdays final bell, the MICEX Index tumbled 2.84% to 1,676.36 and benchmark RTS eased 2.43% to 1,939.00.In view of the problems in the global financial sector, Sberbank was among the lead decliners on MICEX. The lenders commons sank 3.14% and prefs pulled back 3.41%. O&G plays moved south in stride with the market. Furthermore, their descend was fueled by a 2% decline in crude futures: Tatneft fell 3.09%, Gazprom gave up 2.9%, Gazprom Neft lost 2.66%, Surgutneftegaz dropped 2.65%, Lukoil eased 2.43% and Rosneft ended 2.1% lower. Norilsk Nickel declined 3.36% on MICEX amid falling nickel futures. UES stocks outperformed the market: the energy holdings commons dipped 1.71% and prefs dropped 1.56%. VTB also fared better, off 1.19%, looking as a defensive instrument.Other blue chips ended as follows: MTS was off 2.87% and Rostelecom plunged 2.59%. Turnover lowered to $7,530.25 mln on MICEX and grew to $59.77 mln on RTS.

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[Source: Russian Stock Market Blog]

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