RTS(Moscow)Market Overviews

Russian Stock Market Overview
31/10/2005-04/11/2005

The overall volume of turnover was 137,9 EUR million. The leader of this week apparently was Lukoil – it’s trade in shares was evaluated at 35,6 EUR million. EESR got second with a trade value of 24,7 EUR million. This week saw the release of the World Bank report stating that the rubble actually got about 20 per cent more expensive over last 7 months and thus the exports from Russia are based on global demand of raw materials. The newspaper Kommersant argues that this is one of the reasons why exports of oil actually went down by 0.6% during last quarter. This actually was one of the adding factors to intensified trade with shares of Russian oil companies on the Moscow stock market this week.

Lukoil (LKOH): The share prices that have been falling during October have recovered (increase of 3.6% during this week). The fact that the company awarded BNP Paribas bank as the main bank to support its subsidiaries in Bulgaria providing the whole range of liquidity management services might have added to this increase. Thus the shares are expected to continue rising during next week.

For Rostelecom (RSTK) previous week turned up to be very successful as they made 15 deals by selling 680000 shares with the total turnover 1241800,78 EUR. The share price climbed for 3,1% during that week, which could be easily explained by the news coming from the company: in the end of October this company was awarded within "Telecomunications-Quality" voluntary certification system. Moreover, financial report for 9 months has been published in the beginning of November, showing the growth of net profit of 19%. The price of shares are expected to increase, due to the fact that Rostelecom was included in the list of “100 best client-oriented companies.”

United Energy System of Russia (RAO UESR) had the second biggest turnover during this week, which reached a peak of 24,7 million EUR. The price of the shares was increasing gradually by 4,6% from 29,9 EUR to 31,3 EUR per share, and most probably this rate will continue rising. This conclusion can be made due to the fact that Russian power monopoly is successfully re-organizing its infrastructure. Moreover, new shares of such energy companies as “Brjanskenergo”, “Vologdaenergo”, “Dagenergo” (belonging to RAO UESR) are going to be issued.

Aleksejs Krecetovs
Egle Murauskaite
Olga Babina
Vadims Sokolovs