The upcoming week will be volatile, the shares of Gazprom and Rostelecom can upgrade the local maxima
Oct 19th, 2009 | By admin | Category: News and CommentsThroughout the last week we watched the game on the increase around 0.5%, but closer to Friday opened a correction. However, on the basis of the closing on Friday, the market had added 1.5%. This is due to the fact that all world markets are at maximum values. Nervousness is forcing many investors to record their profits, they have received lately.
The most significant event of last week was a visit by Russia's prime minister to China. During the visit of Vladimir Putin, the parties agreed to supply to China annually 70 billion cubic meters of gas to western and eastern routes. Now the gas price is linked to Asian oil prices.
This news has played a positive market last week. Better than all that, actually, and surprisingly, Gazprom took this news, shares of which are above the market (4,5%).
Just last week oil has updated highs this year and reached $ 78.75 a barrel. Consequently, the continued decline of the dollar.
Today market opening took place with a gap up. By 11.30 indexes MICEX and RTS were in the green corridor: 2, 18% and 1%, respectively. Today, oil prices continued to increase and almost reached the mark of $ 79.
this week is expected reporting of large U.S. companies for the third quarter: Coca Cola, Dupont, Macdonalds, Bank of New York. These data will make some adjustments in the stock markets. The same block will be released macroeconomic statistics. Must report China.
I expect that this week the market will be very volatile. We can see updates highs last week, including actions such as Gazprom, Rostelecom, as well as securities of energy companies. Other companies, most likely, have the potential to fall.
I would recommend to keep Gazprom's shares, and all the rest (banking sector, oil companies) to sell, because prices are, I think, will be below the market.
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