Russian stock market continues drop because declining external markets, Rostelecom plummets on news from MSCI
MOSCOW. May 17 (Interfax) - The Russian stock market continued to drop on Tuesday owing to a negative trend on world stock markets and declining oil prices on expectations of news from Europe's debt market. The RTS and MICEX markets hit their lowest points for the year. The main decliners for the day was Rostelecom , plummeting on news from MSCI indexes.
Benchmark stocks on the MICEX stock market decreased by 0.88% to 1,608.66 points (after hitting their lowest point for the year at 1,603.14 points) and RTS - down 0.94% to 1,828.90 points (after posting a yearly low of 1,821.11 points).
The main decliner on the MCIEX was Rostelecom, plummeting 7.1% for common shares and 0.3% for prefs, which, in spite of expectations, will not join MSCI index calculations starting June 1, along with IDGC Holding (down 3.1%) and prefs for Mechel (down 5%).
In addition, news that Rostelecom's board of directors has advised against a dividend payment for 2010 had a negative impact on the company's common shares. However, they recommended a payment rate of 0.4344 rubles per share for preferred shares.
Shares in OGK-4 were excluded from the MSCI Russia Standard Index and went down 2.3% on the MICEX. However, shares in LSR Group were added to the index and increased by 2.5%.
Other decliners were companies also reduced on the MSCI: Norilsk Nickel , down 2.4% on the MICEX, NLMK - 3.8%, Sberbank - 1.9%, Novatek - 1.6%, MTS - 1%, Tatneft - 1.4%. Shares in VTB and Gazprom were also lowered on the MSCI but increased on the MICEX by 0.9% and 0.01%, respectively.
Lukoil shares were increased on the MSCI (up by 0.2% on the MICEX), Polymetal - 2.5% and Uralkali - down 1.2%
Posting losses among second tier stocks on the MICEX were O2TV, down 3.2% and TGK-2 - 2.5%.
Posting gains were VSMPO-Avisma , up 2.5%, Aeroflot - 1.2%, RusHydro - 1.1% and IDGC Center and Volga - 0.9%.
Total RTS Classic Trades came to $4.97 million, RTS Standard deals - $643.48 million and MICEX Stock Exchange deals - over 48.149 billion rubles.