Stock market consolidating on lack of ideas 

Stock market consolidating on lack of ideas

(Interfax News Agency Via Thomson Dialog NewsEdge)MOSCOW. June 5 (Interfax) - The Russian stock market posted gain Monday morning on growing oil prices. but began consolidating by afternoon as it looked for new ideas.By 12:30 p.m. Moscow time. benchmark stocks were mixed around 0.1%- 3.8% on the Russian Trading System (RTS) and the Moscow Interbank Currency Exchange (MICEX). The RTS index grew 0.46% to 1.362.64.Demand for Russian ADRs fell noticeably when London trading opened on Monday and prices did not grow more than 1%.Rostelecom (RTS: RTKM) grew 3.1% on the MICEX and 3.8% on the RTS. Tatneft (RTS: TATN) rose 2.1% on the RTS and 1.2% on the MICEX.Sberbank (RTS: SBER) was down 1.6% and Mosenergo (RTS: MSNG) fell 0.8%.Gazprom (RTS: GAZP) shares are trading under 300 rubles a share. The gas giant grew 0.2% to 299.6 rubles a share and its ADRs were at $45 in London.Oil prices are rising after Tehran said that crude suppliesfromthe Middle East could come under serious threat if the U.S.invadesIran. The bullish market is also gaining strength on favorable U.S. economic data Friday that lowered the probability that the Federal Reserve will continue to increase its key rate. which was good news for emerging markets.Despite the returning optimism on world markets because of the expected pause in interest rate hikes. it is not very likely that the Russian market will return to its levels before the correction anytime soon. said Vadim Smirnov of Alemar.
"This will be complicated by technical factors and the speculative weather last week." he said. "The market's dependence on estimates made by investors about the current macroeconomic situation is fueling unsteady and unequal growth. Prices could still drop on fear caused by uncertainty over economic news when the experience of the May correction is still fresh. The strong resistance level is 1. since this is where the line of support of the previous trend is that was broken by the recent correction." Smirnov said.Bank of Moscow (RTS: MMBM) experts said the actions by the Fed will only be clear at the end of June when it holds its next meeting."Until then it's likely that high volatility will remain on emerging markets. and investors will still closely follow U.S. macroeconomic news." the experts said. "No important statistics on the U.S. economy are expected this week. It looks like inflation statistics expected at the end of the week will give a final answer to the question of whether rates will be hiked or not." the experts said.There likely will not be a steady trend on the Russian stock market this summer. said Deutsche UFG analysts."On the contrary. the next few months should be a period ofstrongvolatility around 1.500 points on the RTS index -until theprospects for the world economy for 2007 become clear along with the prospects for emerging markets." Deutsche UFG said in a report."A positive close last week could fuel an inflow of monetary resources that will give support to the market for another few days. However. we still think that investors should use the current growth to close their positions in Russian stocks before another surge of high volatility." the experts said.Among second-tier stocks. the Bank of Moscow rose 2% and Dalenergo (RTS: DALE) preferreds continued to post gains. RTS classic market trading was $14.5 million. and trading volume on the MICEX stock section was 17.9 billion rubles. of which about 7 billion rubles was for Gazprom. rm RTS$#&: AFLT. ABI: 802.11n Wireless Chipsets Are Not Perfect. AppExchange Picks Up TARGUSinfo For CRM Platform ? Java and Pocket PC Support to ' ? O2 UK Extends Their Relationship with Intervoice ? Interwise Connects Schering-Plough's Worldwide Employees ? TCS Intros MSAG-Based Routing for VoIP 911 Calls ? Mobile Commerce Platform Provider VOCEL Announces Changes to Board of ' ? Google Earth and Google Maps API Get Upgrades ? CSI Releases Virtual Observer 3.0 for Call Center Call '
? Temasek Polytechnic Gains Innova'? TV-phone wars recruit forces? Computer firm moves to new '? RENESAS DESIGN VIET NAM SELECTS '? PEERME LAUNCHES VOIP SOFTWARE FO'? Internet pioneers: VOIP wiretapp'? Telephony@Work purchase to exten'? Mittal opposes entry cost for '
INTERNET TELEPHONY Conference & EXPOJanuary 23-26. 2007 - Fort Lauderdale-Broward County Convention Center Fort Lauderdale.




stock investing