Almost all of Russia”s blue chips are in the “red zone”: Gazprom (-1.47%), LUKOIL (-1,97%), Sberbank (-1.95%)
Russia market: crash or correction?
By 11:05 Moscow time, Russia”s stock indexes show a significant reduction: RTS (-2.13%), MICEX (-1.88%). Opened in negative zone with a gap down, Russia”s lower areas have accelerated to date. English FTSE losing 0.71%, French CAS40 reduced by 0,88%.
pessimism players on the opening contributed to yesterday”s close of Asian indices in the negative zone. Tightening credit conditions in China can affect the central bank reduced the production and demand for raw materials. It is possible that the interest rate in China will be lifted within a month.
The oil market on Wednesday, prices fall. Price nearest futures contract for WTI crude oil is 74.03 dollars /barrel.
Almost all of Russia”s blue chips are in the “red zone”. Quotes of the most liquid shares on MICEX are: Gazprom - 180.1 USD (-1.47%), Lukoil - 1642 RUR (-1.97%), Rosneft - 2465 rubles (-2.1%), Norilsk Nickel — 4635 RUR (-1.80%), Sberbank - 86.38 RUR (-1.95%), VTB - 0.0708 USD (-1.8%), RusHydro - 1,196 rubles (-2.00%).
Among the recent important publications single out the following:
The RF Government approved a plan to move the territorial network of companies, including subsidiaries IDC, a new system of tariff regulation - RAB. Part of networking companies, according to the schedule, can go to the RAB during 2010, the transition to a new method of tariff regulation should be completed on Jan. 1, 2011. In particular, prior to 1 July RAB must switch completely to IDC Center, IDC South MRSC Volga and a number of other branches of IDC. Since January 1, 2011 at the RAB should move all the IDC, including Grid, Lenenergo and the Far Eastern Distribution Company (DRSC).
We believe that approval of plans for the transfer of network companies on tariff setting by the method of RAB increases the likelihood of realization of these plans and can have a positive impact on stock quotes IDC. First, the decision positively for the shares IDC Center, IDC South and Volga IDC, as these companies have with the July 1, 2010 will be transferred entirely to the RAB. At the same time, we believe that investors will wait for publication of parameters for the transition to RAB, the key of which is the value of the original invested capital base of each network company.
At the moment, many of Russia”s blue chips and the major indexes penetrate significant levels of support, so it is advisable to stay outside long positions. In our view, there are significant prerequisites for a deep correction at the moment. At the same time, the level of domestic liquidity is still very high, and the inflow of funds investing in Russia and the CIS, continued for 11 consecutive weeks. Therefore, the most likely scenario is seen out Russian sites in a wide Comma delimited.
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Indexes in Asia, falling due to fears of tightening credit conditions in the PRC
U.S. indexes rose on Monday on 0,2-0,5%, futures cheaper Tuesday
Falling quotations Russian securities may be quite large-scale
The increase in apprehensions of investors around the world leads to further subsidence of stock indices
Refusal to zero export duty from oilfields in Eastern Siberia would adversely affect the shares of Surgutneftegaz, TNK-BP and, above all, Rosneft
Dollar exchange rate to the ruble on the Moscow Interbank Stock Exchange now stands at 30.31 rubles
In the current conditions under the greatest pressure may be shares of banks and commodity companies
As a result of the morning decline futures Brent crude sank to a level of 72.7 dollars per barrel
If fear of slowing growth of the Chinese economy will go into panic, full drop in world markets can not avoid
