Profit fixation determined morning and early afternoon's deals-the market could not afford to repeat yesterday's upward leap, and the good news was not enough, for that matter.
"The Russian stock came down, morning, as many investors were wary to keep up grand in the bull-dominated market, and so chose to secure their gains. The correction had finished by midday with a majority of stock, and the market was only a tiny bit down against opening time," said Roman Andreyev of the CentreInvestSecurities.
Bad news came into the background with an upsweep of the previous days. Even a billion dollar back taxes demanded from the Yuganskneftegas left the market fairly calm, he added.
The Moody's shifted its Russian rating forecast from "steady" to "positive", it announced late in the afternoon. Bulls took courage. Blue chips of the fuel-and-energy complex leapt up the highest. The Surgutneftegas came 3.27% up, closing time, and 2.53% with the Moody's information, the United Russian Power Grid a respective 0.47% and 1%, and the Norilsk Nickel 0.98% and 2%. Even the victimised Yukos came 3.85% and more than 5% up-the day's highest.
The Moody's opinion was something of a thunderbolt, especially after S&P and Fitch reserved statements on the prospects to reappraise Russian ratings. The Yukos controversy keeps the market apprehensive. More than that, forecasts surely mean less than current ratings, says Sergei Kosynkin of the Zerich Capital Management.
The Moody's forecast came as the day's central event. True, the agency's opinions of the Russian economic today and tomorrow might be too flattering, and other major agencies will hardly follow it. Be that as it may, the forecast is likely to bolster up the market for a day or two, expects Alexei Logvin of the Interfintrade. Characteristically, bulls gave in a day or two after the Moody's upgraded its Russian rating to investable, he substantiated his point.
Improved forecasts and upcoming ratings are different things, says Andreyev. The news from the Moody's had the strongest impact on the Russian Eurobonds, and the upswing was rather speculative.
Putting it shortly, the Russian stock market came up, but only slightly.
The Russian Trading System had come 0.69% up by closing time, to 679.01, and the MICEX 1.28% to 704.04.
Analysts expect the RTS to hit a 700 mark by the year's end.
