Reports » Russia

Russian stock market morning report by Veles Capital (June 23, 2009, Tuesday, 7.30 a.m. GMT)

The beginning of the week was negative for the Russian share market. The RTS index reduced along with the oil prices and futures for the American indices. No support was indicated on behalf of Europe. The trades open was marked by a single drop to the level around 990 points, and in the afternoon the correction continued. The main drop related the shares of the commodity companies: the oil sector slipped by 5-7%, metallurgy – by 6-7%. Serious reduction of quotes was indicated on the shares of Sberbank and VTB – by more than 9%. The shares of NLMC were on the opposite side due to having added more than 3% against the neutral news background. At MICEX the shares of Aeroflot looked better than the market due to the statement by the CEO of the company with the details of the anti-crisis program.
 

Main news
 
Tatneft reported by US GAAP for 1Q 2009.
Net profit of Tatneft in 1Q 2009 by US GAAP formed 230.6 mn USD, as comes from the report of the company. Net profit turned out to be lower than the previous year results by 11.7%. However in ruble equivalent growth of the given estimate was indicated by 25.2% versus 1Q 2008.
 

Other news
 
- Gazprom Neft carried out holders’ meeting and outlined the prospect development directions.
On Monday the Gazprom Neft’s shareholders meeting took place, where the company’s board of directors has been elected, and also dividends for 2008 in the amount of 5.4 RUR per share have been adopted.

- The share of Zyuzin in Mechel reduced to 66.7%, 38% of which are in pawn.
The decrease of share took place in March as a result of covering the convertible bonds for 150 mn USD by Zyuzin’s company Calridge. 0.66% of shares given as a tribute to the authorized capital stock of Armolink were input in the providence for the financing, attracted by the company. Besides, all the portfolio of Mechel, belonging to Dalewave (129.27 mn shares, 31.05% of capital) and a share of Bellasis (25.87 mn shares, 6.2%) are in pawn.

- S&P lowered the rating of Uralsvyazinform.
June 22 2009 Standard & Poor’s rating service lowered the long-term credit rating of Uralsvyazinform from “BB-” to “B+”. One of the reasons for the rating lowering was the company’s addiction to the short-term financing.