Bloomberg News

Russian Stocks Rise, Led by Lukoil, Tatneft; Pyaterochka Falls

December 09, 2005

Russian stocks rose, led by energy producers OAO Lukoil and OAO Tatneft (TATN), after crude oil prices climbed to a one-month high.

The Russian Trading System Index, or RTS, added 0.3 percent to 1082.40 in Moscow, close to an all-time high reached Dec. 7. Ten shares rose, 13 fell and 27 were unchanged. The measure has gained 0.9 percent in five days, rising for the fourth week.

The Moscow Interbank Currency Exchange Index, or Micex, rose 0.1 percent to 994.96, closing at a record high for a third day.

Pyaterochka Holding NV, Russia's largest supermarket chain, tumbled after cutting its full-year sales target.

Lukoil, Russia's biggest oil producer, gained 0.5 percent to $60.00. Tatneft, the sixth-largest, advanced 0.9 percent to $3.46.

Crude oil for January delivery rose 0.5 percent to $60.95 a barrel on the New York Mercantile Exchange as of the close of trading in Moscow. Prices earlier touched $61.50 a barrel, the highest since Nov. 4.

``Oil is finishing the year without a decline, around $60 a barrel, and investment funds need to show they hold a lot of oil companies' shares at the end of the year,'' said Dmitry Peregudov, a trader at Antanta Capital in Moscow.

Global depositary receipts for Pyaterochka plunged 35 percent to $15.42 in London, their lowest since July 4 and the biggest one-day drop since the shares started trading May 5.

The company cut its sales forecast to between $1.3 billion and $1.35 billion from an earlier forecast of $1.6 billion after sales growth slowed in St. Petersburg, its home market and Russia's second-largest city. The new forecast would mean sales will fall as much as 18 percent from $1.59 billion posted in 2004, according to the company's Web site.

Seventh Continent

OAO Seventh Continent, a Russian supermarket chain, declined 7.4 percent to $25.10, a three-week low and the biggest one-day drop since Oct. 19.

Baltika Brewery, a Russian beermaker controlled by Scottish & Newcastle Plc and Carlsberg A/S, fell 4.7 percent to $30.50.

RAO Unified Energy System, the national power utility, advanced 1.1 percent to 42.3 cents. Russia plans to raise as much as $5 billion selling shares in the generating companies being spun off from Unified Energy, known as UES, Industry and Energy Minister Viktor Khristenko said yesterday.

The government plans to sell shares in three to five of the new generating companies next year and in 2007 to raise money to increase generating capacity, Khristenko said. A reorganization of the company will be completed by the end of 2008, he said.

GDRs of Evraz Group SA, Russia's biggest steelmaker, added 4 percent to a record $18.35 in London.

Evraz agreed to pay $675 million for half of Yuzhkuzbassugol, a coking-coal producer controlled by Evraz's owners, including billionaire Alexander Abramov. Abramov, Russia's 14th-wealthiest individual, is seeking coke producers for Evraz to help cut costs after prices for the steelmaking raw material doubled this year.

Its GDRs plunged 35 percent to $15.42 in London, their lowest since July 4 and the biggest one-day drop since the shares started trading May 5.

To contact the reporter on this story: Maria Ermakova in Moscow at mermakova@bloomberg.net.

To contact the editor responsible for this story: Balduin Hesse in London at bhesse2@bloomberg.net.


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