By Maya Dyakina and Sonia Elks
MOSCOW, Nov 22 (Reuters) - Russian shares trimmed earlier gains on Thursday
afternoon, with Rushydro outperforming the market after
recapitalisation plans were approved, while the rouble was stable in thin
At 1319 GMT the rouble-denominated MICEX share index lost 0.10
percent to 1,410.4 points, while the dollar-denominated RTS was up 0.02
percent to 1421.31 points, following global markets, cheered by encouraging
economic data from China.
'The Russian market ... has now penetrated the rather critical 1,400 mark
for the MICEX. If the market holds that mark in the coming days, then upward
momentum will continue,' said Oleg Achkasov, head of equity trading at VTB
'(However) given the uncertainty over Greece and potential further declines
in the oil price if the Middle Eastern tensions ease, the market could yet again
be pressured to go down.'
The power sector outperformed the market, rising by 1.36 percent, led by
Rushydro which gained 3.6 percent following news that President Vladimir Putin
had signed a decree authorising its 50 billion rouble ($1.6 billion)
Manufacturing and oil and gas sectors both underperformed the market, with
heavyweight Rosneft down 2.5 percent at 243 roubles in
Moscow and down 2.5 percent at $7.8 per depositary receipt in London.
Rosneft is in the process of buying rival oil company TNK-BP from
British major BP and Russia's AAR consortium in a $55 billion deal. As part of the deal, BP is set to plough back $4.8 billion of
proceeds into buying a 5.66 percent stake in the enlarged Rosneft from
Rosneftegaz at $8 a share.
Andrei Kook, a senior trader at Uralsib Capital, said the mentioned price
was a 'serious constraining factor' for Rosneft stock.
'Given that the securities have grown strongly in a short period of time,
many shareholders will be happy to sell at $8 and take a profit,' he said.
'At the current time, I don't see any reason why the shares should rise any
higher - the market conditions are not right.'
The rouble firmed 0.1 percent to 31.15 versus the dollar.
However, the Russian currency fell 0.4 percent against the euro at 40.16 . It was 0.1 percent lower at 35.20 versus the
dollar-euro basket which the central bank uses to guide the rouble's nominal
exchange rate, while prices for Brent crude slipped to under $111 a barrel after
a ceasefire was agreed in Gaza.
'There weren't so many exporters, but market players waited for their
currency selling and opened positions (long positions against the rouble) in the
morning,' said a dealer at a Western bank.
'In the evening speculators had to cut their positions because later
liquidity would fall to zero, as U.S. markets are closed'.
Russian Latest Net % % Change on
Markets Change Change year
MICEX 1404.34 -1.36 -0.10 0.15
RTS 1421.31 0.34 0.02 2.85
London ADRs 816.72 1.92 0.24 4.91
Emrg Mkt Indx 986.01 5.17 0.53 7.60
MSCI Russia 87.80 -0.08 -0.09 11.34
VTB 0.05 0.00 0.38 -10.94
Gazprom 142.51 -0.29 -0.20 -16.81
LUKOIL 1910.80 -4.60 -0.24 12.23
Rostelecom 120.04 0.04 0.03 -21.03
Dollar/Rouble 31.15 -0.03 -0.1 -3.10
Euro/Rouble 40.16 0.15 0.37 -3.79
Rouble basket 35.20 0.05 0.14 -3.45
DEBT Bid Ask %Rtn Coupon
Russia 10-yr 7.05 7.02 0.11 7.60
MONEY MARKET Bid Ask Close
Overnight 5.65 6.16 5.95
All data taken from Reuters at 1319 GMT
(Reporting by Maya Dyakina and Sonia Elks; editing by Stephen Nisbet)
Keywords: RUSSIA MARKETS/
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