Russian stocks might not resume an upward movement before the middle of May, MDM bank analysts believe. The stock market is likely to stabilize after the holidays, but one cannot rule out the possibility of further declines.
According to analysts, investors will focus on any news after the holidays, therefore, it is too soon to foresee a future short-term market trend. On May 7 a court trial on YUKOS case will be held. The Federal Reserve System meets on May 4 to decide when to raise interest rates which are now at 40-year low.
Taking into account the lack of ruble liquidity, any negative news will likely pressure the stock market. Experts foresee a small trade volume at the three sessions between the holidays.
Currently the stock market undergoes correction, which has begun 2 or 3 weeks ago. Information of a possible de-privatization of the Sayano-Shushenskaya hydro power station influenced today's trend the most. Investors consider the news to be a negative factor after the YUKOS case. Risks of possible de-privatization affected RAO UES -a Russian blue chip. Lower metal prices on global exchanges resulted in Norilsk Nickel's decrease.
RAO UES lost 6.67 percent, Norilsk Nickel shed 5.9 percent, YUKOS decreased 3.14 percent, Mosenergo fell 3.36 percent, Rostelecom declined 6.06 percent, LUKoil was 4.07 percent lower on the RTS exchange as of 4:00 p.m. On the MICEX exchange RAO UES led the decliners falling 7.81 percent, LUKoil shed 4.3 percent, YUKOS lost 3.81 percent, Norilsk Nickel was 7.59 percent lower, Mosenergo declined 5.13 percent.
On June 16, Geneva hosted the first meeting between presidents of Russia and the USa, Vladimir Putin and Joe Biden. After the talks, the presidents, as expected, did not hold a joint press conference