RTS(Moscow)Market Overviews
Russian Stock Market Overview20/03/2005-24/03/2005
During the week RTSI index has increased slightly to the figure of 1420.25 points, and total trading volume was approximately 264 million EUR. The main companies that influenced the index the most were Transneft, United Energy System of Russia, Surgutneftegaz, and Gazprom.
Transneft (TRNFP) was the company that influenced the most on RTSI. Its price of shares plummeted dramatically from 1869.3 EUR to 1815.3 EUR. The main decrease was on Friday, when it dropped by 10.08%. On Wednesday the company’s shares were not traded at all. However, during the week the share value fluctuated with a very big standard deviation (e.g. on the 23rd of March it increased by 4.74%). On Tuesday in Pekin the president of the Russian Federation Vladimir Putin signed a document on economic (including energetic) cooperation. During this event Transneft signed an agreement with the Chinese national oil-and-gas corporation on construction of branch to China from an oil pipeline Eastern Siberia - Pacific Ocean. Therefore, it is supposed to lead to the increase in profitability of both companies.
United Energy System of Russia (EESR) experienced a negligible decrease in the share price – from 0.55 EUR on Monday to 0.54 EUR on the last day of trades. On Tuesday the 21st of March the stocks of two companies, created during reforming of joint-stock company EESR, were launched in trading in RTS. Moreover, within the signing of the aforementioned document between China and the Russian Federation, the chairman of board of EESR Anatoly Chubays and the general director of the state electro network corporation of China Lu Chenja have signed the agreement on all-round development of the feasibility report on the project of delivery of the electric power from Russia to China. It is expected to bring economic benefit to both sides in optimal time.
Surgutneftegas Open Joint Stock Company (SNGS) faced 30 deals with total turnover of 4,8 million EUR. The price of shares was unstable and went up and down dramatically; however, in comparison with the beginning of the previous week it has increased by 6% to 1.25 EUR per share. The reason for this is considered to be a meeting of the Board of Directors of the company which took place on 17 March 2006 and where the future plans of Surgutneftegas were announced. Most probably the price of shares the next week will be fluctuating around the current figure due to speculative trading.
JSC Gazprom (GAZP) was the main company which influenced the positive growth of RTSI index. Total trading volume reached the figure of 150 million EUR, and the price of shares has rocketed from 8,08 EUR to 8,24 EUR per share. The reason for it was that the head of the Board of Directors of Gazprom Alexey Miller made a visit to Milan, Italy in order to negotiate with the representatives of Italian leading companies which are operating in the sphere of energy system about future collaboration. The price of shares is expected to rise because the probability that Gazprom can sign several contracts with Italian companies for supplying gas is quite high.
By Aleksejs Krecetovs
Vadims Sokolovs
