Market Roundup

The Russian market rode high Thursday on the back of positive corporate news flow being released from the US, and as a result, t he RTS rose 1.79% and MICEX added in 1.96%.

O&G stocks went up against an upturn in crude prices: Gazprom grew 2.6%, Rosneft gained 2.2% and LUKOIL climbed 2%. Banking names were on the rise as well: Sberbank advanced 2.5% and VTB spiked 2.3%. Metal and mining stocks again outperformed the marker: Severstal rocketed 5.9%, MMK jumped 6.4% and NLMK added 3.4%.

US market showed a steady upturn Thursday, with benchmark indices rising over 2%, on the bank of positive corporate news flow. Asian markets opened to the upside this morning, pushed up by surging commodity prices. Crude prices are currently trading at USD 77.6 per bbl.

In our opinion, the morning news flow is positive for the Russian stock market. High crude prices could drive up O&G plays. As to statistics, we recommend paying attention to UK GDP data for 2Q 2010, due to be published at 12:30 pm.

The Russian market showed a robust upturn Wednesday on the back of favorable corporate news flow in the US and growing crude prices, and as a result, the RTS gained 2.08% and MICEX advanced 1.97%.

O&G stocks grew in synch with crude: Gazprom added on 1.8%, Rosneft was up 1.5% and LUKOIL surged 2.8%. Banking plays were on the rise as well, in line with market trends: Sberbank climbed 2.6% and VTB spiked 2.3%. Metals and mining stocks, which had underperformed the market, saw considerable growth as Severstal jumped 5.5%, MMK rocketed 2.3% and NLMK increased 4.9%.

US benchmarks shrank more than 1% yesterday after a statement made by the Fed. Investors were displeased by the regulator's uncertainty over the economic development in the US. Asian markets have been on a descent today on this backdrop. Crude prices have corrected up somewhat after a steep fall earlier and Brent is currently trading at USD 75.1 per bbl.

In our opinion, today's news flow is negative for the Russian stock market, which is expected to decline following other world stock exchanges. O&G names have a chance to outperform the market if crude prices continue to keep growing. We look forward to the stats being released today, and we recommend paying attention to unemployment benefits and US existing-home sales due to be released today.

The Russian market closed to the downside Tuesday in synch with other world stock market benchmarks, as a result, the RTS lost 0.42% and MICEX eased 0.59%.

O&G stocks gave ground under pressure from declining crude prices: Gazprom dropped 0.8%, Rosneft dipped 1% and LUKOIL was unchanged. In banking names, Sberbank slid 0.9% and VTB stayed at the same level. Steel plays were market outsiders: Severstal and NLMK gave up 1.9% each, and MMK edged down 0.8%.

The US market rode high yesterday, with S&P 500 rising 1.1%, on the back of favorable news coming from the real estate market. Asian markets are a mixed bag: on one hand, Apple's positive operating report has brought in certain positive; on the other hand, markets are under pressure from the strengthening yen. Crude price are now trading higher than USD 76 per bbl.

In our opinion, today's news flow is positive for the Russian stock market. O&G plays have an excellent chance to outpace the market on the back of growing oil prices. The terrorist attack on the Baksan HPP could put pressure on RusHydro shares. The crude market is waiting for the publication of US fuel reserve data later today.

The Russian market opened to the downside on Monday, but managed to recover losses by the end of session, thanks to rising crude. As a result, the RTS gained 0.36% and MICEX climbed 0.68%.

O&G names did not see buoyant demand yesterday, despite the upsurge in oil prices: Gazprom advanced 1%, LUKOIL inched up 0.1%, and Rosneft was flat. The banking sector recovered and outperformed the market: Sberbank added on 1.8% and VTB spiked 1.3%. Metal names traded mixed: Severstal eased 0.3%, NLMK rose 0.4% and MMK grew 0.5%.

US markets were riding high Monday on expectations of positive corporate news from large utility and IT companies. Asian markets also opened to the upside this morning, on rumors that China in the future will not attempt to cool down the real-estate market as actively as the past. Crude prices have also seen growth, Brent is trading at USD 75.8 per bbl.

We regard the morning news flow as positive for the Russian equities market. O&G plays have an excellent chance to outperform the market today against the backdrop of oil price growth. We recommend investors pay attention to US property market statistics, due to be released 4:30 pm.

The Russian market kicked off to the upside in the first half of Thursday; however, negative news coming from the US turned the tide and as a result MICEX dropped 1.4% and the RTS lost 1%.

O&G stocks followed market trends against a fall in crude prices: Gazprom eased 0.6%, Rosneft dipped 2.2% and Surgutneftegaz slid 1.7%. Financial names also underperformed the market: Sberbank gave up 1.6% and VTB lost 1.3%. The metals and mining sector followed suit: NorNickel edged down 1.6%, Severstal fell 0.8%, NLMK lost 1.5%, Mechel declined 1.2%, and Raspadskaya eased 1.3%. Utilities were the market top decliners: RusHydro plummeted 3.4%, FGC decreased 3.2%, OGK-2 dropped 2.9% and OGK-3 went down 2.6%. Auto makers were among the few to close the session on a positive note: AvtoVAZ was up 1.1% and Sollers gained 1%.

The US market was driven by conflicting factors on Thursday; on one hand, corporate news flow was fairly positive, on the other hand, macroeconomic statistics saw a slowdown in the economic growth. S&P 500 inched up a moderate 0.1%, with commodity and financial plays being market underperformers. Downbeat sentiments have prevailed on Asian markets this morning against a backdrop of negative US economic statistics. The weakening of the greenback has lent support to commodity markets: crude is trading at USD 76 per bbl and base metal prices remain stable.

Today’s news flow is neutral for the Russian stock market: US markets managed to overcome the opening bell’s initial negativity and were in the positive by the final bell, on the other hand, the morning performances on Asian trading floors instills no optimism. In general, we expect the today’s trading session to progress relatively calmly, while looking to the second half of the day we can expect the release of statistical data to guide the markets.