Analysis

	Russian Stock Market Summary of March 30th, 2008.

The approaching holidays make the players “choose money". Caution over risk – this approach is reasonable prior to publication of important statistical data on the US economy and a resolution by the FRC on the interest rates. A correction in the crude oil and metal market does not contribute to the growth of the RTS Index. It declined all last week and reached an important support level of 2,100 points. The daily charts show a head-and-shoulders pattern, which indicates a possibility of further decline to 2,075 points. The situation at the interbank credit market has become more complicated. The rates have increased by 2-3% to 7.25%. This resulted in the corresponding raise of the REPO rates, which is not likely to make the buyers more active. Sberbank. The reporting data of Sberbank came as a pleasant surprise for the market participants. The net income growth comprised 28.6%. It was followed by the shares growth of 1.7% to 76.85 rubles. The high was at 77.65 rubles. VTB. The Supervisory Board of the Bank recommended to the shareholders to distribute half of the Bank’s net profit for 2007 as dividends to the shareholders. That amount is equal to 9 billion rubles, which is 2.6 times higher than the corresponding amount in 2006. However, this news did not help the Bank stay «in the green». The shares dropped by a half cent. In case news from abroad show the mortgage crisis gradually subsiding, the shares of the "most people’s bank” (second after "Sberbank") may reach the "most peoples IPO". The shares of resource companies are going down in view of the above-mentioned correction in the international markets, where the dollar is getting back its lost positions. Having tested the January highs, the RAO UES shares rose by over 20% to 22.16. Today’s decision of the FRS Open Market Committee will be made public after closing of the Russian trading session, thus it will have its effect at the opening of the morning session on May 4th. The American financial authorities are expected to reduce the rate by 0.25 per cent and to announce a gradual retreat from weakening of the monetary policy. We shouldn’t forget that the market has been growing over the whole month and a correction could be expected. Even in case of a decline to the support of 2,040 points by the RTS Index, the general price growth trend will continue.  Right after the holidays, rapid moves (the so-called gap-ups) may be expected at the opening.