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. Last Updated: 07/27/2016

Upbeat Reports From Mosenergo Buoy Securities

A week after brokers declared the Moscow securities market hopeless, an upbeat, 1995 earnings report for Mosenergo provided the impetus for a moderate gain in blue chips that brought The Moscow Times ruble-based index up more than three points.


Brokers said they expect the trend to continue next week.


Still, decliners outpaced gainers 24 to 19, with the remaining seven companies on the index unchanged. Overall, the ruble-based index rose 3.27 points, to 135.58. The dollar-adjusted index rose 1.39 points, to 63.07.


Mosenergo said it expects net profits for 1995 to be 2.37 trillion rubles, Reuters reported. Although the company gave no comparisons, financial consultancy AK&M told the news agency that Mosenergo's net profits for 1994 were 841.4 billion rubles.


"Today the trading is strong in Mosenergo," said Konstantin Melnikov of Rinaco-Plus. "I guess it's the largest in the history of the Russian Trading System -- almost 30 million shares in Mosenergo alone. That's about $10 million."


The top stock was Rostelecom, which rose 11.48 percent to close at $1.02. Norilsk Nickel rose 6.7 percent, to $5.18, and Surgutneftegaz rose 4.88 percent, to 0.108 cents. At the bottom were Neftekhimbank, down 24.61 percent to 0.33 cents, Trading House GUM, down 14.36 percent to $7.75, and Orenburgneft, down 8.63 percent to 0.90 cents.


The week stood out in contrast to last week, when a delayed reaction to the resignation of lead reformer Anatoly Chubais sent the market down 4 percent by the week's end -- 7 percent to 8 percent at its lowest point in midweek.


But news that the International Monetary Fund would be returning in a few weeks for what is believed to be final talks on a $9 billion loan to Russia helped fuel confidence.


One trader also gave high marks to Prime Minister Viktor Chernomyrdin, who visited the United States this week for talks with U.S. Vice President Al Gore and IMF's head, Michel Camdessus.


"It's always a good thing to see Chernomyrdin and Gore eating a pastrami sandwich in New York," said Peter Kizenko of Alliance-Menatep. "All-in-all, the political face was smiling."