Reports » Russia

Russian stock market morning report by Veles Capital (June 30, 2009, Tuesday, 7.30 a.m. GMT)

On Monday the Russian market showed little activity. Having won back the drop in America and Asia the day before with the down movement at the open, the market began recovering its positions gradually. Among the reasons for that likely was the slight climbing of the oil quotes, which came to the level of 69 USD per barrel. Almost till the very close of the trading session the market traded within the frames of the light climbing trend. However within the last minutes of trades insignificant selling came back to the market, which likely was caused by the pessimistic statements by the minister of finance Alexei Kudrin on the prospects of the global oil prices. Besides, not official information came out on the lowering of Russian economy forecasts by MEDT, which might have also affected the market negatively. Note that all in all no serious moves among the liquid shares were indicated. The only exception was Gazprom that might have upped on the news on extraction growth.
 

Main news
 
Gazprom: first positive stats.
Gazprom's gas extraction went more than 50 mn cubic meters per day up June 25 and exceeded the level of 950 mn cubic meters for the first time within a month, indicated the data of CDD FEC.
 

Other news
 
- Gazprom will buy gas in Azerbaijan.
Yesterday Gazprom signed a bi-lateral deal with Azerbaijan on purchasing 500 mn cubic meters of gas annually starting from 2010 from the given country, impart the materials of the company.

- Lenenergo reported by IAS for 2008.
Sales of Lenenergo by the end of 2008 by IAS grew by 49% to 720 mn USD, cost of the company grew by 50% and totaled 587 mn USD.

- MTS continues building up the debt.
MTS made three credit agreements with the European bank of reconstruction and development (EBRD), Nordic Investment Bank (NIB) and European Investment Bank (EIB) for the sum total amount of 413 mn Euro. The credits on the given agreements are to be covered in 3 and 7 years. The company plans to spend given cash assets on developing the networks in Russian and CIS states.

- GAZ is to fire 6.5 thousand employees this summer.
GAZ, JSC will fire 6.5 thousand employees from Gorkovskiy automobile plant. Earlier it was announced that the company intends to fire 4.5 thousand in July-August.