MICEX (Moscow) - Russian Stock Market Overview

This week was relatively calm for MICEX traders, although the negative trend of decrease in index continued, it was relatively steady and during the week index fell only by 4.4% from 587.33 to 562.34. There hasn’t been made any changes to the quotas of oil production in OPEC countries during their meeting on 29.11, therefore oil prices have been decreasing for the whole week which negatively affected Russian market. Furthermore, experts believe that the decrease in European stock indices also had a negative impact on Russian shares. One more factor which prevented MICEX index from rising was the decrease in main European indices. The top gainers of the week were OGK-3 (OCKC) which rose by 45% and Novolipetskiy Metallurgicheskiy Kombinat (NLMK) with the increase of 28%. The top losers of the week were Norilskiy nikel (GMKN) which decreased by 14% and Novatek (NVTK) with the decrease of 9.5%. 

GMKN experienced 9.5% decrease and closed with a value of 48.529 EUR. Norilskiy nikel GMK OAO is a Russia-based producer of palladium, copper and nickel and by-products, such as metallic cobalt, rhodium, and silver. The decrease might be the result of the presentation given by the company on the 1 December. Firstly, the presentation included the negative information concerning the metal revenues that had decrease by 6% during this year. Secondly, the EBITDA (Earning before Interest taxes, Depreciation and Amortization) has fallen down by 19%. Undoubtedly, these facts have worsened the attitude of the investors towards the company. 

Uralkaliy OAO (URKA) is a Russian company, which specializes in mineral fertilizer production. This week the price of the company’s shares has increased by 1.13%. And it is not too small increase for the company, because during last months its shares’ price was decreasing significantly. The reason of long-term decrease was a newly started probe to investigate a flood in mines in 2006. Resources Minister Yuri Trutnev told reporters, "I think the investigation into Uralkali's fault is inappropriate." He explained that the mistake was made some 60 years ago when the city Berezniki was built on top of the mine. That speech was the main reason of this slight increase. As a result the company has become a bit more attractive for investors.