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Russian stock market daily morning report (February 17, 2010, Wednesday)

Contributed by Veles Capital

By Veles Capital

On Tuesday the Russian share market opened with active climbing against the positive external: Asian markets opened positively, reacting to the positive corporate news, signaled on gradual recovery of the global economy. Also the prices were upping at commodity markets, oil in particular, using dollar weakening versus euro against the background of raising uncertainty on Greece. As a result by noon the RTS index has already broken through the level of 1,400 points and the principal chips were adding from 0.8% to 2.3%. Mainly the metallurgy, oil-and-gas and bank sectors were upping. Later on the market stood at the reached levels, having slightly upped by 3 pm. Then correction came to the market being caused by the weakening of optimism at the European exchange grounds, in particular due to reduction of index of economic trust throughout Europe lower than forecasted by analysts, and still due to the uncertainty on Greek problem. As a result the RTS index went below 1,400 points again, however, the extremely positive oil price dynamics overweighed the bears’ mood and by the end of the session the market reached out to the daytime high.
 

Main news
 

Bashneft plans building up the oil extraction in 2010 by 7.9%.

Oil extraction by Bashneft will up by 7.9% versus 2009 to 13.195 mn tons, imparts 4Q 2009 report of the company. In 2009 extraction formed 12.23 mn tons.
 

 
Other news

- Mechel will start mining at Elginskoe deposit.

According to the data of Vedomosti newspaper, this year Mechel is getting ready to mine the first 200,000 tons of coal at Elginskoe deposit. Special machinery is already arriving to the mine, stripping operations will begin this summer, and first coal will be mined in November. This year the construction of OMPE will be launched also at the deposit. It is not clear when the construction will be completed and up until then coal will be washed at the South Kuzbass plant.