Market Analysis

Yesterday, Russia's indexes have tried to continue to update the annual maxima, but the prevailing external capital markets moderately corrective mood constrained bulls. MICEX Index during the day several times tried to go deep into positive territory, but each time returned to the level of the previous close, and at the end of the session left lower amid falling U.S. indices after the U.S. predominantly negative statistics and amounted to 1 361.75 points (-0 , 26%). RTS Index on the background of still further rise of the ruble to the currency basket remained in positive territory (0.89% to 1 446.14 points). Nevertheless, we note that both indices were unable to get up from the side range of who shall they were a week ago (boundaries 1 310 - 1 370 points on the MICEX index and 1 400 - 1 450 points of index RTS) .

market looked better metallurgical sector - Shares of most issuers have completed the day in positive territory, the highest increase - at PolyusZoloto (2.58%) and Mechel (2.57%), MMC Norilsk Nickel was added 1,12%. In other industry sectors have been modified for quotations in different directions. Gazprom's shares went up by 0,34%, among the factors, which support the securities of the gas monopoly, we can note the issuance of the Danish energy agency permission to build a Danish plot the Nord Stream pipeline beneath the Baltic Sea. The papers of the oil companies against the backdrop of profit-taking in the oil market dominated corrective mood, among the most affected - the recent leader, shares Gazpromneft (-2.41%). Shares of banks led by all attempts of growth in the market, but eventually fell back to negative territory (-1.21% VTB, Sberbank ordinary -0.29%, -1.14% preference).

Board of Directors of Svyazinvest at yesterday's meeting approved a plan of reorganization of the holding in the form of accession to the regional telecommunications company Rostelecom. According to a press release the company, it is expected that legal action to restructure the group will be completed in May 2011. Assessment of the shares, received-tion of corporate approvals, restructuring of debt and other procedures within the framework of accession to the MRC Rostelecom is scheduled for 2010. Stocks started the day Rostelecom ordinary nym jerked upward, which, however, before noon replaced the aggressive profit-taking, who brought them the lead reduction: -5.86% ordinary, -7.17% preferred.

Expectations for today: the dynamics of Russia's market yesterday, in our view, reflects the delicate balance between the stormy optimism engendered an autumn rally, and careful realism. On one hand, the stock market significantly faster than recovery of the real sector of the economy (especially since the sustainability of the latter is far from obvious), but on the other hand, the leading central banks are not yet ready for already-stocheniyu monetary policy. In this situation the best solution seems to us focus on the direction of the market from this equilibrium. At present, the most likely option is a movement within the above range (1 310 - 1 370 points on the MICEX index, 1 400 - 1 450 of paragraphs on the RTS), in the future we can expect from the market of new attempts to take a more aggressive downward correction.

Quotes of the majority of the most liquid shares on the MICEX decline, many blue chips up against a strong resistance levels
Most interesting are now undervalued securities of the electricity and telecommunications sectors
Stocks Rostelecom affirmed the right of buy on expectations, sell on fact
First correction lacks meaningful information occasion
Between a strong bottom-up approach today's session is not expected to play a fall is a great risk
Review of the FOREX market for 20.10.09
The U.S. currency during the trading day Tuesday was able to strengthen against the major competitors in the forex
Indices of the Old World have demonstrated extremely volatile trading session
Denmark allowed the construction of the Nord Stream pipeline on its territory

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