By Sonia Elks
MOSCOW, Nov 23 (Reuters) - Russian stocks pared early gains on Friday as
Rosneft dragged after investors reacted negatively to details of the
blue-chip oil giant's acquisition of rival TNK-BP.
At 0851 GMT the rouble-denominated MICEX share index stood at 1402.4
points, little changed from Thursday's close but off its early high of 1409.6,
wi th the dollar-denominated RTS also flat at 1419.5 points.
Rosneft fell 0.7 percent, underperforming for a second day. The
share had slid 2.5 percent on Thursday after its buy-out of TNK-BP
from BP was finalised under less favourable terms than some had expected.
'It turns out that Rosneft must pay an additional $1 billion as compensation
for delaying payment. Investors were in shock from such a 'poison pill' and
immediately began to get rid of Rosneft shares,' Andrei Tolstunov, asset manager
at Grandis Capital, wrote in a note.
Rosneft also has also seen its plans to expand in the electricity market
frustrated after President Vladimir Putin signed off a plan on Thursday to
consolidate the sector under a new holding company.
MRSK, which will form the basis of the new holding group, climbed
5.1 percent on Friday, with the Federal Grid Co (FSK), which will also
join the new group, trading 6.1 percent higher.
Oil-to-telecoms group Sistema also outperformed, rising 0.8
percent after announcing plans to expand its business lines and increase
Analysts said markets were likely to remain quiet following Thursday's
Thanksgiving holiday in the United States.
Traders at Alemar Investment Group predicted a stable day for the Russian
market, with the MICEX seen trading within a 1,400-1,410 range.
Aton analyst Elena Kozhukhova said other factors could also weigh on the
market, despite an optimistic start to the day.
'Although it is slight, a lowering in the price for oil together with any
inability of the leaders of the EU to reach an agreement at the summit within
the day would put pressure on the stock exchanges,' she wrote in a note.
Brent oil fell to just over $110.4 on Friday, from a high of over
$111 in the previous session.
The rouble was little changed, gaining one kopeck against the dollar at
31.15, and weakening two kopecks against the euro at 40.14 . It was steady against the dollar-euro basket at 35.19.
The yield on Russia's benchmark 2030 Eurobond tightened
slightly, to 2.84 percent from 2.87 percent on Thursday.
Russian Latest Net % % Change
Markets Change Change on year
MICEX 1402.44 -0.20 -0.01 0.01
RTS 1419.45 -0.43 -0.03 2.72
London 815.64 -2.03 -0.25 4.78
Emrg Mkt 990.48 4.76 0.48 8.08
Sberbank 88.31 0.30 0.34 11.98
VTB 0.05 -0.00 -0.44 -11.43
Gazprom 141.60 -0.51 -0.36 -17.34
LUKOIL 1909.00 -4.30 -0.22 12.13
Rosteleco 119.36 -0.39 -0.33 -21.47
Rouble 35.19 0.00 0.01 -3.49
DEBT Bid Ask %Rtn Coupon
Russia 5.84 6.35 5.94
TABLE FROM POWER PLUS PRO
All data taken from Reuters at 0851 GMT
(Editing by Jason Bush and Catherine Evans)
Keywords: RUSSIA MARKETS/
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