RTS(Moscow)Market Overviews
Russian Stock Market Overview21/11/2005-26/11/2005
The week showed a substantial increase of 0.97% in RTS index. So new, first trades executed at the Anonymous Trading platform of the "Russian Trading System" stock exchange Classic Market were settled on 21st November.
Lukoil (LKOH): The price of the shares of LukOil has been going up during the whole second half of November. And though this Tuesday saw a slight decrease in their value, after that the price of the shares continued going up and by the end of the week have increased by 2.12% in value. The latter one is likely to have happened due to the fact that LukOil and the Finnish company Neste Oil have signed an agreement according to which LukOil got 100% ownership of SeverTEK shares. This company is licensed to develop the fields in Komi Republic which were estimated to have some 235mln barrels of oil in reserve in the beginning of 2005 and is said to have a strong growth outlook. Therefore due to this new profitable contract at the end of this week, the price of the shares is likely to rise during the next one.
Unified Energy System (EESR): During the whole November the price of the shares of this company has been more or less steadily increasing. However in the period of November 21-23 there was quite a sharp decrease (of 4.42%) noticeable. This might have happened due to the fact that a competing Russia based oil company Transneft has reported a 26% increase in revenues and in addition to that had been assigned a contract of building a pipeline to the Pacific coast. Moreover, the company Monsenegro 50.7% shares of which is owned by EESR has made a proposal to release shares or convertable bond for almost 1.5bln$ which would be extremely value-diluting for its shareholders. Having taken this into consideration, there was a spin off in another EESR daughter-company Oryolenergo - in order to ensure liquidity of securities. Therefore, by the end of the week the price of the shares of EESR slowly started to recover (rise in value of 0.6%). Next week it is likely that the trend of slight recovering remains or, however if Monsenergo decides to release the shares a significant decrease in value of EESR shares is more than likely to occur.
Rostelecom (RTSK) made 21 deals with total turnover 1 984 836 EUR which proves this company was one of the most successful during the previous week. The price of the shares of this company rocketed in the middle of November and since then it has been gradually decreasing until on 22nd November it reached the lowest value of 1.95 EUR. However, by the end of the week it started to recover and by 25th November the price of the shares increased by 1.09% in value, which could have happened due to the financial report, published in the end of the week. It showed that Rostelecom delivers a solid increase in first half of 2005 year. Moreover, General Director of Rostelecom Dmitry Yerokhin attended the Russian-Japanese economic forum (Tokyo) where he gave a report on cooperation prospects between Russia and Japan in implementing Europe-Asia transit (TEA) project offered by the Company. Rostelecom has a unique transcontinental technical infrastructure to provide the shortest and most reliable route for considerable traffic transmission between the two regions. Therefore, due to all this facts further increase in the price of shares is expected.
Egle Murauskaite
Olga Babina
