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Russian stock market daily morning report (August 23, 2010, Monday)

Contributed by Veles Capital

By Veles Capital

Reduction continued at the Russian share market on Friday. Weak stats on primal claims on unemployment in U.S. output yesterday were among the reasons for given reduction. The mentioned and some other factors coved the optimism on soon recovery of the global economy and so it leads to the reaction of quotes. We should outline the shares of telecommunication, power energy and machinery sector that looked better than the market among the Russian notes. Totally the fundamental factors for the given sectors are positive. In case of telecommunication shares support comes from expectations of the preliminary dividends and also reorganization of Svyazinvest. Power energy might be climbing mechanically after the hot weather and increased power consumption. As for the car-manufacturers the positive comes from the vehicle utilization program.
 

Main news
 

Adding of extractable oil supplies of Gazprom Neft upped by 10%.

According to the company, by the results of the exploration drilling the expected adding of the extractable oil supplies of Gazprom Neft upped by 10% versus the similar period of 2009 and reached 12 mn tons, which forms more than half of the annual plan.
 

Growth of power consumption in Russia due to the abnormally hot weather has suspended.

Within the past week (August 13 to 19) the power consumption in the price zones did not change in sum total volume versus the estimate of the previous week, but grew by 8.6% versus the similar period of the previous year, having formed 15.68 mn MW per hour.
 

Steel smelting in RF is reaching the pre-crisis level.

World steel output the data on crude steel output in July 2010. Output of crude steel in Russia added 11.5% to 5,017 thousand tons in July 2009 (which is 9% less than in July 2008) and formed 5,595 thousand tons in July 2010. We assume fast recovery of the Russian steel smelting industry is already included in the shares' cost.
 

 
 
News briefly
 
Oil and gas: Standard & Poor's upped short-term rating of Gazprom.

Oil and gas: ?? returned a claim on revising the case on 1 bn RUR penalty to TNK-BP.

Bank sector: VTB will not be building up its regional network in CIS.

Transport: UTair improves the production estimates.