A full-fledged correction held sway on Russian stock exchanges yesterday. Despite an auspicious external environment and a positive domestic news flow, most liquid names saw a tangible decline in line with the overall market downturn. The RTS Index closed down 1.83% at 1,253.58 and the MICEX Index eased 2.22% to 1,124.79.

Throughout Tuesday’s session Lukoil was bucked the overall bearish trend, but closer to the final bell the increase in the oil major’s stock quotes tapered to a minimum and the major’s stocks ended the day marginally in the black (+1.53% on RTS and +0.39% on MICEX). Most likely, Lukoil shares have been riding high on positive corporate news and are in speculative demand among investors awaiting news about the oil producer’s new acquisitions. At the same time, sky-high petroleum prices are laying the groundwork for a spike in Russian oils which, contrary to the general pattern remained on the sidelines of a rally on the petroleum market. Tatneft lost 3.19% on RTS (-2.10% on MICEX) and Surgutneftegaz gave up 1.95% on RTS (-2.52% on MICEX). Gazprom eased 4.48% on RTS (-4.55% on SPICEX).

On Tuesday Sibneft gained 1.74% on RTS (+1% on MICEX) buoyed by its rating upgrade to BB+.

Against the backdrop of freezing temperatures in the country, investors’ interest in Sberbank stocks cooled (the bank’s shares pulled down the market on Tuesday) and the lending institution finished the session in the red (-6.83% on RTS and -5.96% on MICEX). Rostelecom inched up 0.43% on RTS (-3.50% on MICEX) and UES eased 0.96% on RTS (-1.56% on MICEX).

FINAM
Russian Brokerage Company
http://www.fin-rus.com
http://finam.blogspot.com

The Russian stock market continued to correct down on Wednesday. The RTS Index slipped 1.48% to 1,235.10, while the ruble-denominated benchmark shed 1.87% to 1,103.71.

The trading session was a repeat performance of Tuesday, as most blue chips moved into negative territory, whereas Lukoil bucked the trend and continued to drive up the market buoyed by over 8% gains in the company’s ADRs on the US market. Lukoil closed higher 0.21% on RTS (+0.83% on MICEX).

Tatneft lost 1.1% on RTS (-0.98% on MICEX), Sibneft slipped 0.73%, Surgutneftegaz dipped 0.8% on RTS (-0.36% on MICEX), UES fell 2.15% on RTS (-2.12% on MICEX), Rostelecom dropped 3.39% on RTS (-2.71% on MICEX), NorNickel declined 1.91% on RTS (-0.82% on MICEX), Sberbank receded 4.33% on RTS (-6.01% on MICEX) and Gazprom saw 4.69% trimmed off its market cap on RTS to $7.73 (-4.82% on SPICEX to Rub 218.77 ($7.73)).

Overall, a broad-based correction is still shaping up due to instability on international markets. However, it is still too early to speak of a mid- or long-term trend, while in the short term yesterday’s losses look quite reasonable after robust gains in the wake of the holidays.

FINAM
Russian Brokerage Company
http://www.fin-rus.com
http://finam.blogspot.com

Buying returned to the Russian stock market on Thursday after a short hiatus, offsetting a 2-day downturn and propelling the market towards the 1,300 milestone. The RTS Index advanced 3.50% on the day, landing at 1,278.28. The MICEX Index shot up 3.99% to 1,147.80.

The prime mover and shaker of the day was again Sberbank which came into the limelight, recouping big losses posted in previous sessions. The lending institution’s shares climbed 5.92% on RTS (+6.59% on MICEX).

A new spike in global petroleum prices and also attractive price levels of falling oil plays were behind the advance in Russian oils. On Thursday, Lukoil was 2.46% higher on RTS (+2.96% on MICEX), Tatneft went up 3.16%, Sibneft surged 6.50% and SurgutNG closed up 3.61% on RTS (+3.19% on MICEX). The gas holding’s shares moved in stride with the market, up 2.2% on RTS and 2.39% on SPICEX. On the other side of the spectrum, Yukos plummeted by nearly 20% on new tax claims.

In other equity stories, UES finished the day in the black (+0.99% on RTS and +1.43% on MICEX), Rostelecom rose 1.1% on RTS (+0.57% on MICEX) and NorNickel jumped 4.55% on RTS (+4.03% on MICEX).

FINAM
Russian Brokerage Company
http://www.fin-rus.com
http://finam.blogspot.com

The Russian stock market was in a decidedly bullish mood heading into the weekend, with most blue chips hitting fresh all-time highs. The RTS Index broke through the 1,300 mark and advanced 2.05% to 1,304.53, while the ruble-denominated benchmark added on 1.85% to 1,169.03.

The key driver underpinning Friday’s rally was global commodities markets where energy and precious metals futures racked up solid gains on the back of geopolitical instability. Crude prices were trading in the range of $67-69 a barrel, while gold prices topped $565/oz. These developments propelled Russian commodities plays, which saw hefty upside. Lukoil advanced 2.67% on RTS (+2.92% on MICEX), Tatneft jumped 3.93% on RTS (+4.82% on MICEX), Surgutneftegaz added 1.33% on RTS (+2.54% on MICEX), Sibneft surged 4.39% on RTS (+0.06% on MICEX), NorNickel grew 2.86% on RTS (+3.22% on MICEX) and Gazprom turned in a more moderate performance, up 0.76% on RTS (and 0.76% on SPICEX).

In other blue chip stories, UES inched up 0.46% on RTS (down 0.34% on MICEX), Rostelecom rose 2.3% on RTS (-0.02% on MICEX) and Sberbank gained 2.3% on RTS (+2.13% on MICEX).

FINAM
Russian Brokerage Company
http://www.fin-rus.com
http://finam.blogspot.com

After Friday’s robust rally, the new week kicked off with a downturn nearly across the board on the back of sagging international stock indexes. The RTS Index lost 0.70% to close at 1,295.39, while the ruble-denominated benchmark dropped 2.13% to 1,144.10.

Sberbank topped the list of decliners on Monday, down 3.22% on RTS (-5.22% on MICEX). This came as no surprise, since the bank’s stocks significantly outperformed the market and now they are correcting deeper than other shares.

Oils were a mixed bag on Monday. Lukoil inched down on heavy trading volumes, 0.13% lower on RTS (-1.97% on MICEX). Surgutneftegaz dipped 1.13% on RTS (-3.21% on MICEX). Meanwhile, Sibneft outperformed the market throughout the day and closed higher 2.17% on RTS (+0.90% on MICEX). Tatneft jumped 3.56% on RTS (+0.23% on MICEX).

On the Gazprom front, the gas monopoly’s stocks sank in line with the overall downturn, shedding 2.25% on RTS to Rub 218.89 ($7.82), and down 3.32% on SPICEX to Rub 218.4 ($7.78).

In other equities stories, UES eased 0.33% on RTS (-0.78% on MICEX), Rostelecom receded 0.65% on RTS (-1.83% on MICEX), while NorNickel inched up 0.24% on RTS (-1.06% on MICEX).

FINAM
Russian Brokerage Company
http://www.fin-rus.com
http://finam.blogspot.com

Tuesday’s trading session was marked by an upturn in most liquid names, erasing the previous day’s losses. The feeling is that the market is at the crossroads and trying to figure out where it’s heading. The RTS Index advanced 0.90% on the session, landing at 1,307.05, while the MICEX Index moved up 1.69% to 1,163.40.

Lukoil is scheduled hold a press conference in London Wednesday, at which its executives pledged to make public the oil firm’s new acquisitions, which could trigger profit-taking in this stock after dizzying gains in recent months. And while the oil major’s news comes as a surprise, we do not rule out a subsequent spike in LKOH stock valuations. On Tuesday, Lukoil took a moderate jump (+0.33% on RTS and +0.77% on MICEX).

In the absence of fresh investment ideas UES surged 3.27% on RTS (+3.50% on MICEX), Rostelecom shot up 3.95% on RTS (+3.52% on MICEX), Norilsk Nickel inched up 0.36% on RTS (+0.87% on MICEX), Sberbank closed 0.80% in the black on RTS (+2.39% on MICEX), Sibneft finished 0.89% down on RTS (+0.99% on MICEX), Tatneft went up 0.76% on RTS (+.54% on MICEX) and SurgutNG landed in positive territory (+1.15% on RTS and +2.30% on MICEX).

The Russian gas monopoly was among yesterday’s advancers on all domestic exchanges, +2.05% on RTS, +2.47% on SPICEX and +2.33% on MICEX.

FINAM
Russian Brokerage Company
http://www.fin-rus.com
http://finam.blogspot.com

The Russian stock market saw another vibrant rally on Wednesday, posting hefty gains nearly across the board. The RTS Index rose 1.35% and struck a new all-time high of 1,324.65, while the ruble-denominated benchmark also added on 1.35% to 1,179.11.

UES enjoyed strong demand throughout yesterday’s trading session. Amid overbought blue chips (Lukoil, Sberbank, and Gazprom), the power holding’s shares have been underperforming the market since early January, which we believe has turned into an attractive investment option. UES jumped 4.22% on RTS (+3.83% on MICEX).

Mild profit taking in Lukoil shares during early trading spiraled into a buying spree in the afternoon. On Wednesday, the oil major’s management went public with a string of upbeat news that drove Lukoil up 1.95% on RTS (+0.87% on MICEX). Overall, oils squarely outperformed the market, as Tatneft added on 1.95% on RTS (+1.31% on MICEX), Sibneft advanced 2.48% on RTS (+3.08% on MICEX), Gazprom surged 2.19% on RTS (+1.96% on MICEX, +1.88% on SPICEX) and Surgutneftegaz inched up 0.75% on RTS (-0.03% on MICEX).

In other successful equity stories, Rostelecom rose 1.27% on RTS (-0.02% on MICEX), NorNickel gained 2.58% on RTS (-1.92% on MICEX) and Sberbank closed 2.04% higher on RTS (-1.19% on MICEX).

FINAM
Russian Brokerage Company
http://www.fin-rus.com
http://finam.blogspot.com

The old high of 1997 was just taken out at close today 1-26-06. Doubt I would ever see this day.

Now no one can say they were buried by Russian stocks, It just took 9 years. This is as important a day as the day after the 1929 crash in the USA.

No overhead resistance. Can I ask you a question? TRF never bought Gazprom. Can you think of any reason? Other mutual funds did.

I have suffered watching Sberbank go to the sky. Why not an ADR on that one. My account is an IRA so I buy and sell in it without worry of cap gains. FYI.

GL Blair

About TRF it is just my guess, that managers feel uncomfortable or think it is not a right thing to buy ADRs with large price premium to domestic price. I have no other ideas.

Sberbank is the largest Russian bank, 50% owned by Central Bank and as you probably know has a limit of 20% for non-resident shareholders. Historically, there were no point to issue ADRs. Sberbank mainly works in Russia and it can easily borrow rubles from Central Bank.

But, after VTB (2nd largest bank in Russia) IPO (planned in November 2006) may be we will see some changes with Sberbank ADRs. At least, I hope.

Best regards,

Mikhail

Thursday’s trading session was mixed despite a stabilization in energy prices at fairly high levels and bullish performance by global stock indexes. However, a powerful rally in some domestic equities drove the RTS Index up 0.99% to 1,337.82, while the MICEX Index added on 0.68%, landing at 1,187.11.

Throughout the session Norilsk Nickel was the main mover and shaker which moved the market northward. Apart from record high prices for primary commodities (platinum is trading near a 26-year high), the metal giant’s stocks were buoyed by news that Norilsk Nickel and Rio Tinto, the world’s No. 3 mining corporation, intend to set up a JV to prospect and extract mineral reserves. GMKN shot up 2.40% on RTS and 3.06% on MICEX.

UES continued its upward momentum, 3.04% higher on RTS (+1.74% on MICEX). Strong trading volumes in this stock most likely point to buying by Western investors.

In other equity stories, Sibneft climbed 3.96% on RTS (+1.02% on MICEX), SurgutNG bolted up 3.37% on RTS (+3.31% on MICEX). On the other side of the spectrum, Tatneft gave up 0.48% on RTS (-0.86% on MICEX), Lukoil slipped 0.38% on RTS (-0.45% on MICEX), Rostelecom closed 2.08% lower on RTS (-1.66% on MICEX) and Sberbank retreated 1.1% on RTS (-1.61% on MICEX). The Russian gas monopoly ended the session in the red (-1.47% on RTS, -1.71% on MICEX and -1.54% on SPICEX).

FINAM
Russian Brokerage Company
http://www.fin-rus.com
http://finam.blogspot.com

Investors again closed out the trading week in a bullish mood. Most liquid names traded at record highs on heavy volumes. The RTS Index advanced 2.62% to 1,373.22, while the MICEX Index was 3.36% higher, settling at 1,227.05.

Another round of bullishness among oil traders, which pushed black gold futures to new heights, lent tangible support to Russian oils, the top advancers of the session. More precisely, Lukoil jumped 2.76% on RTS (+3.26% on MICEX), Tatneft added on 4.81% on RTS (+7.36% on MICEX), Sibneft ended up 1.06% on RTS (+2.86% on MICEX) and SurgutNG surged 4.71% on RTS (+6.02% on MICEX).

On the utility front, UES climbed 2.75% on RTS (+4.83% on MICEX) after a steep rise (by more than 7%) in its ADRs. The electricity concern’s stocks were likely riding high on buoyant Western demand.

In other equity stories, Sberbank was up 1.24% on RTS (+2.09% on MICEX), Rostelecom dipped 0.43% on RTS (+0.85% on MICEX), NorNickel spiked 3.14% on RTS (+3.21% on MICEX) and Gazprom moved upward in stride with the market (+1.56% on RTS, +1.91% on MICEX and +1.99% on SPICEX).

FINAM
Russian Brokerage Company
http://www.fin-rus.com
http://finam.blogspot.com

Monday’s trading session kicked off with a broad-based correction after sizeable gains during the last few sessions. It cannot be ruled out that profit-taking was stoked by speculative sentiments among investors on the eve of FOMC’s Tuesday meeting. The RTS Index dipped 2.98% to 1,332.27, while the MICEX Index slid 3.31% to 1,186.38.

Russian electricity monopoly UES bore the brunt of the downturn, dropping 4.59% on RTS (-5.84% on MICEX). The nosedive in the energy holding’s stock quotes came as no surprise given their outperformance last week.

Meanwhile, Gazprom ended the day weaker against Friday’s close (-5.88% on RTS, -5.57% on MICEX and -6.10% on SPICEX), inter alia on news that the gas giant’s weighting in the MSCI Russia Index will be revised no earlier than May 2006.

Other decliners included, which Lukoil slipped 3.5% (-2.95% on MICEX), while Tatneft eased 0.98%, Sibneft shed 2.09% on RTS (-4.63% on MICEX), Surgutneftegaz fell 3.67% on RTS (-3.59% on MICEX), Rostelecom was 2.35% lower on RTS (-2.12% on MICEX), Sberbank pulled back 3.23% (-2.92% on MICEX) and Norilsk Nickel gave up 3.05% on RTS (-2.86% on MICEX).

FINAM
Russian Brokerage Company
http://www.fin-rus.com
http://finam.blogspot.com

Tuesday’s trading session was marked by uncertainty about where the market is heading. The RTS Index ended the day in the red (-1.22%) at 1,315.96 and the MICEX Index slipped 1.26% to 1,171.44.

The highlight of the day was a press conference held by Russian President Vladimir Putin, during which he shared his vision with journalists of the development prospects for the Russian economy. However, investors greeted the event without enthusiasm and turned bearish. As a result, Lukoil gave up 0.71% on RTS (-0.83% on MICEX), Surgutneftegaz pulled back 1.58% on RTS (-1.60% on MICEX), Tatneft closed 1.83% lower on RTS (-1.05% on MICEX) and Sibneft plunged 5.98% on RTS (-3.65% on MICEX).

Against the backdrop of upbeat corporate news Gazprom locked in modest gains (+1.37% on RTS, +1.40% on MICEX and +1.86% on SPICEX). As for other decliners, UES dropped 1.80% on RTS (-0.89% on MICEX), Rostelecom fell 1.53% on RTS (-1.71% on MICEX), Norilsk Nickel finished the day in negative territory (-1.71% on RTS and -2.09% on MICEX) and Sberbank slid 0.67% on RTS (-1.23% on MICEX).

Despite the broad-based correction in blue chips some second-tiers staged a powerful rally. Center Telecom climbed 8.97% on MICEX, while OMZ added on 7.47% on RTS (+7.91% on MICEX). It is noteworthy that second-tier stocks have caught up with more liquid plays in recent weeks and it cannot be ruled out they will soon turn into short-term market drivers.

FINAM
Russian Brokerage Company
http://www.fin-rus.com
http://finam.blogspot.com

The last month of winter kicked off with another rally on the Russian stock market nearly across the board. The RTS Index rose 1.79% to 1,339.57, while the ruble-denominated benchmark jumped 2.55% to 1,201.32.

Telecoms took center stage on Wednesday, with most stocks in this segment hammering out hefty gains in the absence of any fundamentals. Perhaps the reason for this is that telecoms have been underperforming the market recently, which likely caught investors’ eyes. Rostelecom surged 4.44% on RTS (+5.14% on MICEX), North West Telecom advanced 1.45% on RTS (+2.97% on MICEX), Siberia Telecom grew 1.12% on RTS (+3.20% on MICEX) and Far East Telecom climbed 4.22%. However, we believe that this upturn in telecoms is largely speculative amid uncertainty over the future fate of Svyazinvest.

In other success stories, Lukoil rose 1.3% on RTS (+2.13% on MICEX), Tatneft leapt 3.53% on RTS (+2.05% on MICEX). Surgutneftegaz advanced 2.55% on RTS (+2.61% on MICEX), Sibneft added on 4.66%, Gazprom rose 2.12% on RTS (+2.27% on MICEX, +2.19% on SPICEX), Sberbank was up 1.34% on RTS (+1.82% on MICEX), NorNickel closed 2.33% higher on RTS (+2.24% on MICEX) and UES jumped 3.06% on RTS (+3.74% on MICEX).

Among second-tiers, Irkut shot up 8.24% on RTS (+9.07% on MICEX) driven by expectations of the company’s CLN issue in early February. Although this issue only amounts to $100 mln, it will enable the company to boost its investment appeal on the eve of an IPO scheduled for 2006.

FINAM
Russian Brokerage Company
http://www.fin-rus.com
http://finam.blogspot.com

Your story reminded me of a joke

A husband and his mistress are caught with no clothes and having ***. His wife walks in. The man says: What are you going to believe? what I say or your lying eyes.

Did you know there are Russian ADRS for example, Nizhnekamskneftekhim, that have no market makers and therefore can't be bought here. They have a symbol, ONKMY, all the rest is good but no market makers.

Now a stock that is dead, Rosneftegazstroy Jsc has a market maker, Go figure.

ONKMY has made a new high and looks good. Of course it is the largest petro plant in Europe. And to have no market maker is a crime.

I spent this morning talking to Fidelity about this and all I got was his
Russophobia--dislike of Russians.


I can give you a good position statement why Siber telekom must go up. To fully understand this, one must travel East. 99% of Russians have never been except for the Army. 99.99% of Americans have never been to Eastern Russia. Yet it is part of Russia. Vladivstock may be the remotest city in the world.
GL Blair