Analysis

	Russian Stock Market Summary for the week of March 4th – 11th, 2008.

With a low at 2,006.86 points the RTS Index grew to 2,059 points. The turn started even before the publication of the US economic statistics. The next resistance levels are 2,080, 2,105 and 2,117 points. If the market holds within the range of 2,000-2,100 points, a strong signal will be formed for growth over 2,120 points. The additional support to the markets was provide by the FRB, which declared on Tuesday on the measures for liquidity crisis overcoming. Starting from March 27th, 200 billion dollars as a credit facility will be provided to primary dealers weekly. The same will be done by the Central Banks of England, Canada, Switzerland and the CEB. The total sum of investments will comprise 245 billion dollars. It seems to be the most appropriate action of the FRB from the beginning of the credit crisis. This is surely more effective than constant reduction of the rates, which leads to nothing but inflation growth. Just after that the stock indexes grew rapidly, having overcome the negative tendencies of the recent days. The most intensive growth was observed in the resold bank shares. The Russian stock market was supported by other good news – the S&P agency reconsidered the long-tern rating of Russia from neutral to positive. Gazprom sharply rose from 297 to 313 rubles, the lower limit of the upward range. Locally the growth is sufficient for taking a part of the profit, thus a correction to 306 rubles shall be expected. From there it is reasonable to renew long positions with the goals of 312, 315 and 318 rubles. Nornickel tested the support around 7,030 rubles, thus continuing to be traded within 7,320-7,040 rub. range. There is a risk of a price drop to 6,900 and 6,850 rubles, from which careful purchases with close profit goals and stops below 6,780 rubles are recommended. Sberbank rebounded from the support around 74 rubles, which was mentioned in the latest review. However, the break through to the 80 rubles mark was short term. Taking the latest events into account, we can recommend purchases upon decline to 75 rubles. Lukoil. A drop to 1,680 rubles resulted in new long positions, which brought the price to 1,828 rubles. The next resistance level is 1,860 rubles but the daily graphs show turn signals, thus purchases on price drop to 1,770 rubles may be recommended.