On Monday U.S. benchmarks posted moderate declines, down 0.2-0.3%. Hi-tech and financial stocks emerged as the day's worst performers. As for financial issuers, the Bank of America warrants special attention, plunging after the release of its earnings report that fell short of market expectations by a long shot. Asian markets are also down this morning, with losses averaging 1%. The bullish trend built up steam on commodity markets Monday mainly on the back of a weakening dollar. For example, crude futures again set a fresh record, settling at USD 117.50 a barrel. Apart from the declining greenback, crude oil futures also rallied on the oil cartel's decision to hold oil production steady in the near future.

In our opinion, Tuesday's morning news flow is neutral for the Russian market. We do not expect tangible fluctuations across the board in liquid names. Commodity stocks could outperform today on the strength of surging crude prices on commodity exchanges. As regards financial plays, they could lead the losers, as a massive sell-off has been seen particularly among financial issuers in recent days.

On Monday, domestic equity stories landed for the most part in negative territory: the RTS Index inched down 0.17%, while the MICEX Index was harder hit, sliding around 1.16%. A downswing in financial names because of the Bank of America's unimpressive earnings report that triggered a sell-off in financial stocks, put substantial pressure on the domestic benchmarks. Stocks of Russian large banks looked weak Monday: Sberbank sagged 1.9% and VTB slid 2.2%, experiencing a new wave of sell-offs. Notwithstanding the uptrend in crude futures oil producers traded in synch with the market: Lukoil pulled back 0.4% and Rosneft shed 1.3%. Metal names also traded down in line with the market: Norilsk Nickel lost 1.5%, MMK gave up 1.2% and Severstal tumbled 1.4%. Only NLMK bucked the trend, up 2.6% on the release of strong financials. UES eased 3.4% on slackening investor demand with its wind-up right around the corner.

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Russian Brokerage Company

U.S. stock indices headed further south Tuesday, settling down around 1%. Investor sentiment took a turn for the worse after a number of concerns (Texas Instruments and McDonald's) released their 1Q 2008 financials. Disappointing were not only the figures themselves that fell in line with consensus forecast, but also management's FY 2008 earnings guidance. As for Asian trading floors, they are, on the contrary, heading north, up an average 1%. The uptrend, largely driven by a weakening dollar, gained momentum on commodity markets. For example, oil futures again ended the session at a record high (USD 119.40 a barrel). Apart from the declining greenback, yesterday's rally was driven by the oil cartel's decision to leave oil output unchanged at the current level.

We view Wednesday's morning news flow as neutral for the Russian market. We do not expect tangible fluctuations across the board in liquid names. Commodity stocks could outperform today on the strength of surging crude prices on commodity exchanges.

On Tuesday, Russian benchmarks saw more red ink, with the RTS Index easing 0.28% and the MICEX Index edging down 0.35%. This downturn was mainly attributable to bearish investor sentiment that spilled over from US and European exchanges to Russian trading floors.

Only gold miners finished the day in positive territory: Polyus Gold added on 1.14% and Polymetal notched up 0.13% on support from red hot gold prices. At the same time, high crude prices failed to push up oil producers: Lukoil and Tatneft declined 0.2%, while Rosneft bucked the downturn, up 0.9%. On Tuesday, Russian bank shares again underperformed the market: Sberbank lost 0.4% and VTB dropped 0.7% amid a new wave of sell-offs. Of note are metal stories that outperformed the market: Norilsk Nickel edged up 0.2%, MMK was up 0.1% and Severstal jumped 0.5%, except for NLMK (-0.1%), trading down after several days of gains. UES (-2.7%) moved further south amid softening demand ahead of its wind-up.

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Russian Brokerage Company

U.S. benchmarks eventually bounced back up Wednesday after several days of losses, with indices adding on an average 0.5-1%. As a matter of fact, stocks could have jumped much higher if investors put no pressure on financial plays that ended the session 1-2% lower. As for Asian trading floors, they are presently a mixed bag, trading 0.5% both up or down. Commodity markets traded down Wednesday after upside in recent sessions: crude futures retreated to USD 118 a barrel and gold contracts also eased, stilling hanging above the psychologically important USD 900/oz mark.

We regard Thursday's morning news flow to be upbeat for the Russian market. We believe that today Russian indices could pace modest gains after a 3-day downturn. Financial issuers that have been under investor pressure in recent days could look weaker than the market.

On Wednesday Russian stock indices extended losses: the RTS Index shed 0.33% and the MICEX Index edged down 0.44%. The downturn came amid sluggish trading as many investors opted for the sidelines and seem to be in no hurry to take investment decisions when prospects of the American economy remain uncertain.

No single trend shaped up on the Russian stock market Wednesday. Only O&G plays stood out: Rosneft jumped 1.2%, Tatneft added on 0.5% and Gazprom was up 0.4%, and only Lukoil underperformed, off 0.8%. Mixed colors were seen virtually in all segments: Sberbank pulled back 0.9% and VTB gained 0.8% in bank plays, Norilsk Nickel declined 0.3%, MMK advanced 1.1%, Severstal dipped 1.4% and NLMK edged up 0.3% in metal issuers. UES (-3.9%) has been moving south for several days in a row amid softening demand ahead of the holding's reorganization.

Finam
Russian Brokerage Company

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U.S. indices extended their gains on Thursday, closing out around 1% in the black. Financial plays, the weakest performers of the few past sessions, emerged as the best performers. Investors turned bullish on the back of positive economic data released Thursday, which outpaced the expectations of many market participants. Asian platforms are heading north right now, with indices up an average 1-2%. Major strengthening of the US dollar in recent days stoked a downslide on commodity markets: oil futures retreated to USD 116 a barrel and gold contracts dropped below the USD 900/oz mark, trading in the region of USD 890 per oz.

Friday's morning news flow looks upbeat for the Russian market, we believe. In our opinion, today Russian stock indices could rally after a downturn in recent sessions. Financial issuers could outperform the market, since, in our opinion, they hold much stronger upside potential than plays from other sectors.

On Thursday Russian benchmarks extended a downtrend that kicked off Monday: the RTS Index plunged 2.62% and the MICEX Index settled 1.6% lower on thin volumes, as many investors opted for the sidelines and seem to be in no hurry to take important investment decisions when the US economy looks uncertain. A downswing on commodity markets also exerted an adverse impact, causing commodity stocks to end lower.

By the final bell financial plays, the weakest players in recent sessions, outperformed the market: Sberbank slipped 0.3% and VTB spiked 1.4%. As for other sectors, domestic equities moved in line with the overall bearish trend, except for UES (-5.3%) which has been heading south for several days in a row on slackening demand. O&G plays saw red ink: Rosneft sagged 1.7%, Tatneft plummeted 1.5%, Gazprom ended 1.3% lower and Lukoil declined 1.8% on the back of retreating crude futures. Metals traded down in line with the overall bearish trend: Severstal dipped 2.2% and NLMK sank 3.5%, while MMK bucked the trend, climbing 2.3%. Norilsk Nickel (-3.5%) suffered deeper losses than other metal names, as news appeared that RusAl wrapped up the acquisition of a 25% stake in Norilsk Nickel from Mikhail Prokhorov. This could put downward pressure on Norilsk Nickel's stock prices in the short-term outlook.

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Russian Brokerage Company

On Friday U.S. benchmarks largely closed out in positive territory, but gains were moderate, not higher than 1%. Financial names commanded robust demand for the second session in a row, but massive sell-offs in hi-tech stocks prevented the indices from posting stronger gains. On balance, upbeat investor sentiment spilled over to Asian exchanges: they are now heading north, up an average 1%. Despite a rising dollar crude futures extended gains Friday, hovering around USD 119 a barrel. Presently, gold futures are hanging about USD 890 per oz.

We believe that Monday morning's news flow looks upbeat for the Russian market. Russian stock indices could climb higher, extending the uptrend that kicked off Friday. Financial plays could outperform the market, since they, in our opinion, hold stronger upside potential to their fair price levels than companies from other sectors and, in addition, financial stocks have seen vibrant demand among investors across the globe in recent days.

On Friday, for the first time during the week Russian benchmarks closed out in the black: the RTS Index advanced 1.27% and the MICEX Index landed 1.34% higher. It cannot be ruled out that this uptick was driven by the fact that most players closed their short positions which were launched during the week.

By Friday's final bell, metal stocks finished as the day's advancers: NLMK jumped 1.7%, except for MMK (+0.6%) and Severstal (-0.3%), Norilsk Nickel gained 1.5%. O&G plays traded in line with the market: Rosneft was up 1.1%, Tatneft edged up 1.1%, Gazprom ended 0.9% higher and Lukoil added on 2% on the back of still sizzling crude prices. Financial names swung both up and down: Sberbank rose 1.2% and VTB lost 0.9%. By Friday's closing bell UES finally hit the jack pot, soaring a hefty 5.5% on the day.

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Russian Brokerage Company

US trading lacked a single trend Monday. As a result, after running up moderate intraday losses the indices finished the day flat. It is fair to say that trading was low-key, as most investors are waiting for US economic data due out this week. At present, Asian exchanges are trading marginally in the black, up an average 1%. By Monday's closing bell, futures steadied on commodity markets, with oil contracts hovering around their all-time highs (USD 118 a barrel) and gold futures going for USD 890 per oz. In principle, such red hot prices on base commodity markets should push up commodity-driven stocks even further.

We view Tuesday's morning news flow as upbeat for the Russian market and believe domestic indices could extend their gains set in Monday. Steel makers, whose stocks rallied yesterday after some investors rerated the growth prospects of this sector, could outperform the market today. Sberbank is set to release its 2007 IFRS financials today, which could give a shot in the arm to the lender's shares. We do not expect to see much volatility, since volumes will be thin as many investors are reluctant to make important investment decisions as long as uncertainty prevails in the US economy.

On Monday Russian stock indices were on the northbound track: the RTS Index added on 1.02% and the MICEX Index settled 0.39% higher. The benchmarks posted slim gains on razor-thin volumes, which is another sign that many investors are sidelined ahead of the May public holidays.

Metal issuers emerged as Monday's top advancers yesterday: NLMK soared 3.4% and Severstal surged 2% after investors reassessed upside potential in the domestic steel sector. The only underperformer here was MMK (-0.6%), which dropped on expectations that the metal giant's earnings could decline due to a spike in feedstock (iron ore and coking coal) prices, whose supply risks are the most serious among domestic metal producers. Reports about RusAl's purchase of a blocking interest in Norilsk Nickel continue to put pressure on Norilsk Nickel's stock valuations (-1.1%). O&G plays moved in line with the market: Rosneft upticked 0.3%, Tatneft advanced by a hefty 3.6% and Lukoil jumped 1.1%, still riding high on the strength of rallying oil prices. Only Gazprom underperformed the market, off 0.1%. Financial names fell in line with the overall market trend: Sberbank edged up 0.9% and VTB inched up 0.1%. By Monday's close, UES was just 0.2% higher after locking in heftier gains last Friday.

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Russian Brokerage Company

Russian stocks drifted lower Tuesday under pressure from deteriorating conditions on commodity exchanges and weakness on European exchanges. As a result, benchmark RTS shed 1.13% and the MICEX Index ended 0.42% lower.

Sberbank (+1.7%) outperformed ahead of the release of its 2007 financials, which slightly outpaced the market's expectations. VTB (-0.4%) failed to gain support from its decision to pay out generous dividends, as the lender's supervisory board recommended paying out 50% of the bank's net profit in dividends. UES (+1%) again outperformed the market, as many investors now seem to be willing to take part in the energy holding's wind-up. O&G plays were mostly on a southbound track yesterday amid falling crude prices: Gazprom lost 0.6%, Lukoil dipped 1.2%, Rosneft inched down 0.3% and Tatneft ended flat. Metal issuers, except for MMK (+0.3%), also finished in negative territory: Norilsk Nickel declined 1.5%, NLMK plunged 2.4% and Severstal pulled back 1.4%.

On Tuesday the US stock market experienced marginal losses on renewed fears about the scope of the aftermath of the subprime crisis for the financial sector. Citigroup said yesterday it needs additional funds to cover losses incurred from writedowns. Asian markets are mixed this morning amid a heavy flow of corporate news. Commodity exchanges underwent a correction Tuesday in response to the dollar's continuing uptrend.

Wednesday's morning news flow is moderately negative for the Russian market. Be that as it may, we do not expect heavy volumes, at least in the first half of the day. Anything could happen around the closing bell, since a slew of US economic data (including 1Q GDP figures) is due out today. According to our forecasts, bank shares will be the most vulnerable today on growing fears about fallout from the subprime crisis. A retreat on commodity markets could deal a blow to commodity stocks. Most likely, UES will continue to see heightened volatility in the run-up to the bellwether's imminent delisting.

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Russian Brokerage Company

Trading in Russian equities was low-key Wednesday ahead of the May public holidays: the RTS Index slipped 0.19% and the MICEX Index inched down 0.06%. Investors were sitting on pins and needles waiting for the Fed to got public with its interest rate decision and even stronger-than-expected 1Q 2008 US GDP data failed to jolt the market into action.

The day's top advancer, notwithstanding market conditions, was UES (+3.5%), while oil and gas plays were a mix bag: Gazprom edged up 0.1%, Lukoil jumped 0.6%, Rosneft shed 0.5% and Tatneft ended 0.6% lower. Bank shares also saw modest losses: Sberbank was up 0.3% and VTB edged down 0.3%. Metal issuers largely underperformed the market: Norilsk Nickel lost 1.2%, MMK dropped 0.6%, NLMK plunged 3.6% and Severstal ended 0.2% lower.

Key US benchmarks added on an average 1.5% during the May holidays in Russia. Investors were not taken aback by the wording of the Fed's statement after the April meeting about inflationary pressure in the economy. Asian markets also headed north at the end of the week. A stronger dollar cooled prices on commodity markets, although crude futures we least affected, hovering around USD 115 a barrel.

Today's morning news flow is upbeat for the Russian market and we expect to see upside all across the board. Be that as it may, in the absence of external guidance from Western stock exchanges trading should be mostly sluggish. Today's lead advancers could be bank stocks. Oil and gas plays could also lock in some gains, while UES stocks remain the least predictable blue-chip name.

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Russian Brokerage Company

After a breather for May public holidays, Russian equities headed north Sunday on the back of bullishness on Western exchanges. The RTS Index added on 0.87% and the MICEX Index gained 1.62%.

As tension surrounding lending markets subsides, financial names led the advancers: Sberbank jumped a solid 4.2% and VTB spiked 3.1%. As before, UES (+2,7%) again outperformed the market, as investors still view the energy holding's current stock prices as an attractive buy ahead of the holding's final wind-up. Metal issuers also locked in gains: Norilsk Nickel jumped 2.4%, Severstal spiked 2.7%, NLMK edged up 0.6% and MMK was flat. Oil and gas plays traded in synch with the market: Gazprom advanced 1.1%, Lukoil added on 0.9%, Rosneft grew 0.5% and Tatneft ended 1% higher.

Global exchanges were closed yesterday and trading kicked off only today on some Asian exchanges on a moderately upbeat note. We therefore regard Monday's morning news flow as neutral for the Russian market and most players will be waiting for the reopening of European trading floors, whose performance could offer guidance to the Russian equity market going forward. Be that as it may, we do not rule out that some market participants could go for profit taking right after the opening bell.

Today O&G names look the most resilient in the face of a possible correction. Bank stocks could take a drop on reports UBS is looking at major layoffs. Norilsk Nickel's stocks could come under pressure from the losses it incurred from the revaluation of assets in 1Q 2008 under RAS, which were just shy of USD 1 bn. There is a strong likelihood that UES will experience high volatility today.

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Russian Brokerage Company

Russian equities extended gains in early Monday trading, but weakness in US index futures cooled investor optimism. By the final bell, the RTS Index inched up 0.02% and the MICEX Index dipped 0.36%.

Notwithstanding overall negativity, UES (+2.8%) again emerged as the standout gainer. Financial issuers also paced advances: Sberbank grew 0.6, VTB added on 1.1% and Bank Vozrozhdenie edged up 0.8%. O&G plays slightly lagged behind the market: Gazprom lost 0.7%, Lukoil dipped 1%, Rosneft dropped 0.3% and Tatneft retreated 0.8%. Metal names stood out among the top losers: Severstal declined 1.3%, NLMK eased 1.1% and Norilsk Nickel fell 0.9%.

Yesterday, U.S. stock indexes gave up around 0.5% intraday partly on the back of statements by the Fed's former and current chairmen that fallout from the credit crisis will inevitably continue to impact the economy, at least until the end of the year. Moderately negative sentiment prevails on Asian markets this morning and financial plays are back on the list of decliners. Renewed dollar weakness on Monday spurred upbeat trends on commodity markets. US oil futures shot up, passing the USD 120/bbl mark on potential disruptions in crude supplies from Nigeria.

We view Tuesday's morning news flow as moderately negative for the Russian market. Again, domestic bank stocks look the most vulnerable, but they could gain some support from Sberbank, which is scheduled to close its shareholder register this week. Oil and gas shares stand a good chance to outperform the market today after US oil contracts hit a new all-time high. Likewise, according to our estimates, there is a growing likelihood that UES stocks could correct down.

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Russian Brokerage Company

Russian benchmarks were on the growth track Tuesday despite prevailing weakness on European stock exchanges: the RTS Index advanced 0.56% and the MICEX Index edged up 0.36%. Bullishness on commodity exchanges continues to provide major support to the Russian equity market.

Yesterday's standout gainers included steel makers on the heels of surging steel prices on the global market: Severstal jumped 1.5%, NLMK leapt 3.4% and MMK ended 0.4% higher. Uncertainty surrounding the future corporate strategy continues to exert pressure on Norilsk Nickel (-0.9%). Also, O&G names largely outperformed the market, with Tatneft soaring 4.5%, Lukoil rising 1.6% and Gazprom advancing 0.9%, while Rosneft dipped 0.8%. Russian bank issuers traded sideways: Sberbank declined 0.9% and VTB added on 1.2%. The rally in UES securities gained momentum (+0.9%), just shy of USD 1.00 apiece.

By Tuesday's final bell, US key indices finished about 1% in the black after the release of stronger-than-expected retail sales figures in the United States. Be that as it may, media reports about escalating inflationary pressure could prompt the Fed to raise the federal funds rate in the near future, which put a damper on stocks near the closing bell. Against this backdrop, Asian markets are trading largely in negative territory this morning, while commodity markets, on the contrary, look bullish. Brent and light sweet crude futures consolidated above the USD 120 mark.

We view Wednesday's morning news flow as moderately downbeat. Additional support for the market could come from today's inauguration of president-elect Dmitry Medvedev. Oil and gas plays remain the session's top picks. Also, in the absence of any major negativity from Western floors heftier demand could be seen for Norilsk Nickel's stocks. Financial issuers could lag behind the market today, although we do not expect any serious declines.

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Russian Brokerage Company

After locking in fairly robust gains at the open yesterday Russian equities spurted into high rally gear in the second half of the session: the RTS Index added on a hefty 2.24% and the MICEX Index spiked 2.65%. The primary upside drivers for domestic liquid names were the swearing-in of Russian President Dmitry Medvedev and an ongoing rally on commodity markets.

O&G plays largely outperformed the market, except for Rosneft (+1.4%): Gazprom surged 4.8%, Lukoil climbed 3.4% and Tatneft took a 2.3% jump. Steelmakers also chalked up stronger gains: NLMK achieved a 6.3% advance, MMK leapt 2.8% and Severstal climbed 2.6%. UES (+3.7%) extended gains with the holding's wind-up in sight and more clarity about where utility industry reform is heading. Financial plays slightly underperformed the market: Sberbank advanced 2.7%, VTB added on 1.4% and Bank Vozrozhdenie closed 0.7% higher.

US stock indices took a pounding Wednesday, sliding nearly 2%. Financial plays topped the casualty list on fears that new rules for financial information disclosure would trigger a new wave of writedowns. Bearish sentiment also spilled over to Asian trading floors. An additional negative factor for the region's equity markets were woes about galloping producer inflation on the heels of record global energy prices. Despite a stronger greenback in the run-up to an ECM meeting, crude futures drifted further north, closing in on the USD 125 mark.

Thursday's external news flow is largely downbeat for the Russian market and we expect to see a marginal contraction in most liquid names in early trading. Be that as it may, the domestic news flow remains favorable. At noon today Vladimir Putin is scheduled to make a speech at an extraordinary meeting of the State Duma, which will be devoted to the appointment of the Prime Minister and mapping out the key parameters of the national economic program. We expect the market will find many reasons for optimism in the incoming PM's address.

Oil and gas stocks again stand a good chance to outperform the market today. Russian bank stocks, on the contrary, will be under pressure from a bearish external environment. This is the first day today when VTB stocks will be trading dividend-free. Sberbank could gain some support from last night's register close ahead of its AGM. Volumes in UES trading still show that speculative trading accounts for a large chunk of transactions involving the energy concern's securities.

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Russian Brokerage Company

Domestic liquid names kicked off Thursday marginally in the red, but shortly after the opening bell stocks rebounded into positive territory in the run-up to Vladimir Putin's speech at the State Duma. And the new PM delivered on expectations, saying it is necessary to ease the tax burden on oil producers, which touched off a powerful rally on the Russian stock market. By the session's close, the RTS Index had gained a hefty 3.75% and the MICEX Index was 3.24% higher.

The unrivalled advancers of the session were O&G plays: Gazprom climbed 5.3%, Lukoil shot up 6.4%, Rosneft spiked 6.7% and Tatneft ended 4.3% higher. Metal issuers also locked in sizeable gains: Norilsk Nickel surged 2.1%, NLMK leapt 4.7%, Severstal jumped 3.6% and MMK ended 2.5% higher. UES (+2.9%) rode high in line with the overall market trend. Banks stood out among the decliners on Thursday: Sberbank skidded 1%, VTB slid 1.4% and Rosbank gave up 3.7%.

The U.S. stock market turned bearish Thursday on expectations galloping inflation on the heels of rallying crude prices. Key stock indices retreated around 1%. Asian markets are heading north today, back on track after several days of losses. Commodity exchanges look fairly stable and oil futures are hovering above USD 125 a barrel.

In our opinion, Monday's morning news flow is largely neutral for domestic investors and we expect blue-chip names to open the session on a mixed note. O&G plays will remain frontrunners on the back of record crude prices and Vladimir Putin's statement about the need to cut taxes on oil producers. Also, a number of issuers (Gazprom, Lukoil, Sberbank and MTS) will be trading today with no-dividend status.

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Russian Brokerage Company

Yesterday the Russian stock market powered ahead on external bullishness: the RTS Index advanced 1.63% and the MICEX Index gained 1.47%. During the session investors continued to chalk up gains on the Prime Minister's statement that the tax burden needs to be eased on oil producers.

Telecoms emerged among the outperformer on the back of a reshuffle at the Telecommunications Ministry: Uralsvyazinform shot up 7.1%, Volga Telecom surged 5.9% and Siberia Telecom soared 5.7%. O&G plays outperformed the market: Lukoil jumped 2.5%, Rosneft gained 4.4% and Tatneft ended 2% higher. Gazprom edged down 0.1% just shy of RUB 360 per share. The last two times when the gas holding's stocks reached this plateau (May 2006 and January 2008) were marked by a sharp market-wide correction. Bank stocks locked in gains heading into the final bell: Sberbank climbed 2% and VTB jumped 2.9%. Metal issuers underperformed the market: Norilsk Nickel notched down 0.9%, NLMK sank 3.2%, Severstal dipped 2.2% and MMK lost 0.4%.

Yesterday, American stock indices posted gains, clawing back losses from last week. The main upside drivers for the market were a moderate retreat in global energy prices and signs that the money market has started to recuperate in the wake of the lending crisis. Asian markets are trading largely higher amid bullishness on US trading floors. Commodity markets saw a correction after the rally in the past few sessions. Crude contracts came down 2-3% from their recent all-time highs.

We believe Tuesday's morning external news flow is largely upbeat for the Russian market and we expect most blue chips to kick off in the black. That said, we view the chance of the uptrend gaining momentum intraday as quite slim. According to our forecasts, the market will be on the lookout for reasons to turn bearish in the days to come. Today all eyes will be on US retail sales and import prices, which are due out later this afternoon.

After piling up hefty gains posted last week oil and gas plays could be relegated to the sidelines today. The external news flow will provide the strongest support for Russian lenders. The upswing in telecoms is likely to continue on expectations the sector is on the verge of a new era.

Finam
Russian Brokerage Company