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Russian stock market daily morning report (February 11, 2010, Thursday)

Contributed by Veles Capital

By Veles Capital

On Wednesday increased volatility was indicated at the Russian exchange market, indices varied within a wide range of values. At the beginning of the day the market slipped under the impact of indefinite stats from China and unclear dynamics in course of the Asian session. However in a couple of hours of trades confident growth was indicated at the market being warmed up by the oil prices that were climbing in the morning. Oil market growth in the morning has been caused by the weakness of the U.S. dollar against the background of short-term stabilization of the situation on South European states that suffer high budget deficits. If monitoring the whole dynamics of trades in Russia, note it being significantly correlated to the commodity market. So that is why the oil-and-gas sector pulled the indices to the previous day close levels as the oil went negative. There still are not enough domestic ideas at the market yet to play the game. We might just outline the telecommunication sector and its used-up idea on reorganization of Svyazinvest, among the sectors that possess their own driver. IRNC Holding is worth paying attention to – the market is full of rumors on the shares of the given company possibly getting included to the MSCI Russia index as a result of changes on February 11. Same thing might happen to Magnit. But the given company does not overweight oil-and-gas giants in the Russian indices, so the final result of the trades formed insignificant minus on the principal indices. Negative was added at the end of the day by the head of FED Ben Bernanke, who announced possible upping of the interest rate “soon”.
 

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