Experts foresee rebound on stock market

A rise in share prices is quite likely on the Russian stock market, following a sharp fall, caused by the news about the possible sale of Yuganskneftegaz, which is YUKOS' main asset, an Uralsib analyst told RBC. The market's reaction to this news has been too sharp, and it is to rebound now, the expert pointed out. The analyst remarked that a decision on selling Yuganskneftegaz had not been made yet, and it was unclear what moves would be made in this connection. The expert added that YUKOS was still having a serious effect on the stock market. However, in the analyst's opinion, aggressive sales of LUKoil shares, reported on Wednesday, were unjustified. Although there is a great deal of uncertainty on the market, the fundamental factors influencing the Russian economy give reasons to hope for a rise in the RTS stock index to the level of 640-670 points by the end of the summer or by the beginning of the autumn, the expert declared.

Other analysts remarked that a substantial decline was unlikely on the Russian stock market today, judging from the situation on the ADR market, where the closing levels generally corresponded with the share prices on the RTS. At the same time investors are likely to reduce the volume of operations because of a high level of uncertainty on the market, the experts believe. In the opinion of the analysts, the general background is unfavorable for the Russian market. For example, they remarked on a serious decline in US stock indices, especially NASDAQ, because of concerns about a faster than expected rise in the Federal Reserve rate.