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. Last Updated: 07/27/2016

Market Recovers in Late Rally




Russia's stock market continued a slump this week that has seen the Moscow Times Index fall 10 percent since President Boris Yeltsin sacked his entire government three weeks ago.


But proving true to the factors influencing them, shares turned around at day's end Friday on stronger than expected support by the State Duma for the prime minister candidate, Sergei Kiriyenko, with the MT Index finishing up 0.09 percent for the day after falling earlier in the day.


Traders said they hoped the backing for Kiriyenko -- whom the lower house of parliament did not confirm for the post on his first nomination Friday -- would translate to a win next week. Many said they would gamble ahead of the game accordingly.


"It is clear the market will go up in a week. It will shoot up," said Andrei Galperin, senior trader at Creditanstalt-Grant. "The game has started. It is necessary to bet [on an upswing] maybe on Wednesday."


"The market opened flat, but after the voting everything jumped back up. One hundred and forty-three votes 'for' is a good figure," said Mikhail Koltsov, a trader at MFK-Renaissance. "The mood of the market is that Kiriyenko will be elected. Next week, people likely will create new positions."


The MT Index of 50 leading shares closed Friday at 228.11, down 2.43 percent for the week.


Unified Energy Systems, the benchmark for the electronic Russian Trading System, closed at $0.3025, up 0.2 percent for Friday and 0.6 percent for the week. LUKoil climbed 0.4 percent Friday to close at $16.80, down 1.18 percent for the week.


The treasury-bill market, which was also slack Friday, recovered with the help of the Central Bank from a difficult primary auction that saw a maximum yield for a one-year issue of 34.5 percent.


For the week, however, yields on one-year T-bills rose to 31.8 percent from 30.3 percent last week.