November 13, 2009
Global markets: Weekly overview
Global equity markets started the week on a positive note after the meeting of G-20 finance ministers and in response to the firm oil price. The rally lasted for a couple of days, but was followed by profit taking alongside weakening commodity prices.
The US equity market rose most of the week, the Dow Jones Industrial Average reaching a 13-month high. The G-20’s agreement to maintain economic stimulus measures and the US Federal Reserve’s intention to leave interest rates at record lows had a positive impact on the market. The market slid on Tuesday after a number of US companies published disappointing results. The main Wall Street indexes closed the week up around 2%.
The Russian equity market rallied the most in three months on Monday as crude traded at $79/bbl and the G-20 agreed to keep interest rates low and maintain record budget deficits until recovery takes hold. The ruble climbed to its highest level versus the dollar this year. Gains were extended on Tuesday as crude remained strong. The weakening of WTI to one-month low dragged the Russian market downward. However, the major indices gained around 5% w-o-w. A number of companies performed in outstanding fashion. Federal Grid Company and MRSK Holding rose a respective 23% and 16% w-o-w, ahead of a final decision on the regulatory parameters of RAB. Volga Telecom, Ural SI and North-West Telecom jumped 11-13% after Prime Minister Vladimir Putin approved a plan to merge regional operators into Rostelecom by March 2011. Sberbank preferred shares gained 10% w-o-w on the back of their addition to the MSCI Russia Index.
Source: Troika Dialog