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Russian stock market morning report by Veles Capital (July 3, 2009, Friday, 7.30 a.m. GMT)

Thursday was negative again at the Russian share market so it started dropping from the very morning. Actually two waves of drop were indicated during the day – in the morning and after 4:30 pm Moscow time. The morning drop was likely due to winning back the dropped oil prices. In the afternoon the market went down under the impact of several factors. First of all, the unsatisfying comments by the head of ECB Trishe, who has actually stated that the bottom of the economic crisis has not been passed yet in the Euro zone. Besides, data on unemployment came out on the U.S. and the Euro zone – the unemployment levels reached their maximums within several decades, which definitely do not set the positive mood on the markets. At the given background the quotes of the oil futures dropped down fast, along with the foreign markets, including the Russian shares. As a result by the end of the day almost all the members of the oil sector went low, being accompanied by the automobile companies, and some telecommunication companies.
 

Main news
 
WGC-1 reported by IAS for 1Q 2009.
Sales of WGC-1 for 1Q 2009 totaled 11.87 bn RUR, which is 12.8% lower than in 1Q 2008. The main reason for the given estimate’s reduction was decline of output by almost 16% by the power energy stations of WGC-1 due to drop of power energy consumption in it locations region.
 

Other news
 
- Uralkaliy ups the prices for potassium chloride by 8% for the market.
Uralkaliy signed an agreement with its Russian consumers – producers of complex fertilizers – Fosagro AG, CJSC and MHK EvroHim, JSC – on upping the prices of potassium chloride in 3Q to 4,750 RUR per ton, imparts the message of the company.