Stock market consolidates without fresh ideas on Monday 

Stock market consolidates without fresh ideas on Monday

(Interfax News Agency Via Thomson Dialog NewsEdge)MOSCOW. June 5 (Interfax) - The Russian stock market consolidated on Monday without any fresh ideas and prices were mixed for blue chips on low trading.Benchmark stocks changed 0.3%-3.2% on the Russian Trading System (RTS) and the Moscow Interbank Currency Exchange (MICEX). The RTS index grew 0.49% to 1.364.33.Demand for Russian ADRs fell noticeably in London and New York on Monday and prices dropped around 1%. along with negative trends on Asian markets. cooled the bullish mood.Rostelecom (RTS: RTKM) posted gains of 5.8% on the MICEX and9.6%on the RTS as it played on its announcement last week that itplans toboost service revenue six-fold to 34.737 billion rubles.Tatneft (RTS: TATN) rose 3.2% on the RTS and 2.6% on theMICEX.Sberbank (RTS: SBER) fell 0.4% on the MICEX. Mosenergo (RTS:MSNG)dropped 1%. Lukoil (RTS: LKOH) was down 0.3% and MMC NorilskNickel(RTS: GMKN) fell 1.1%.Gazprom (RTS: GAZP) could not break past 300 rubles ashare. Thegas giant slipped 0.3% to 298 rubles a share and its ADRs fell0.5% to$44.76 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.The market was relatively weak and trading was calm on Monday. said Roman Rodin of Trust (RTS: HBTT) investment bank."On the one hand. Friday's U.S. economic statistics are not bad for the stock market. however U.S. investors did not support the general optimism. which is why markets closed indistinctly in Asia on Monday." he told Interfax. "There aren't any clear trends on the Russian market also. although growing oil is most definitely lending support." Rodin said.
"Gazprom is trading around 300 rubles. which is a serious resistance level. and Rostelecom is growing on news of revenue growth." he said. "There are still a large number of Western buy orders in this sector. although it's hard to say how long they will last and the growth is mostly speculative." Rodin said."I think that Rostelecom is already overheated and a correction is very near." he said.The trade balance for April and import and export prices in May that will be published on Friday could have an influence on the markets in light of the Fed's upcoming decision on interest rates. Rodin said."The market is trading up thanks to oil and growing metals prices." said Vladimir Savov of Uralsib (RTS: USBN)."If the indices hold on at current prices. then we could saythatthe period of sales is over and speculators will get a signalto buyfurther." he told Interfax."I think that there will be attempts for growth over the next week or two." Savov said. "The CPI index for May - to be released next week - will be important for the market before the Fed's meeting at the end of the month." he said.From the technical point of view. as the RTS indexstrengthens at1.530 points this is an indication of a possible furthergrowth inprices. said Dmitry Roenko of Olma.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. CenterTelecom (RTS: ESMO) soared 14.3% on the MICEX. Aeroflot (RTS: AFLT) grew 4.8% and the Bank of Moscow rose 4.7%.Northwest Telecom (RTS: SPTL) common shares fell 5.9% and its preferreds were down 2.7%. Sakhalinmorneftegaz (RTS: SKGZ) by 3.5% and Purneftegaz (RTS: PFGS) by 2.9%.RTS classic market trading was $37.581 million. and trading volume on the MICEX stock section was 44.4 billion rubles. of which more than 17.6 billion rubles was for Gazprom. rm RTS$#&: 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 '
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