Source Pravda.Ru

Correction might continue on Russian stock market

Neutral sentiments prevailed on the stock market of MICEX on September 5, the previous working day, so the MICEX index dropped only 0.89 percent to 497.82 points on September 5, a MICEX expert pointed out. The volume of trade decreased considerably, compared to September 4, and amounted to about 10.7bn rubles ($350m). RAO UES eased back 0.28 percent, Mosenergo lost 0.86 percent, LUKoil fell 3.60 percent, YUKOS retreated 0.63 percent, Surgutneftegas decreased 1.07 percent, Rostelecom and Sberbank plummeted 2.23 percent and 1.14 percent respectively.

Among factors that influenced the drop on the Russian stock market are the August employment report released in the USA, which showed a 93,000 reduction in jobs instead of expected 10,000 new jobs, the decrease in world oil prices and YUKOS's report about a retreat in the forecast of its oil production in 2003 due to transportation problems. Moreover, European markets were neutral and US markets opened lower.

Taking into account these factors, one can suppose that correction will continue on the Russian stock market today. However, sharp fluctuations of the MICEX index are unlikely to happen.