* MICEX, RTS down in global worries
* Megafon shares down on debut trading
* Rouble weakens on oil
By Maya Dyakina
MOSCOW, Nov 28 Shares in Russia's number two phone operator
MegaFon fell on their first day of trading on Wednesday after an initial public
offering was priced at the bottom of its guided range, adding to a sour mood on
Moscow stock markets.
The poorly received launch added to concern over a fiscal deadlock in the
U.S. and a slide in oil prices that saw Moscow's rouble-denominated MICEX share
index and dollar RTS index fall 0.7 percent and more than one
MegaFon priced its offering at $20 per GDR, raising $1.7
billion. but saw the shares fall in the first minutes of trading
"People got full allocations and hedge funds made up a significant portion
of the book - that's a bad sign because they flip," said one equity salesman in
Moscow, referring to the strategy of short-term speculation.
Shares in MTS - MegaFon's main rival - trimmed some of yesterday's losses,
rising by 0.6 percent.
Still, Angelika Genkel, a senior analyst at Alfa Bank, said MegaFon
depositary receipts could get a considerable boost in demand from index-linked
institutional investors if the stocks are included in the MSCI Russia index
during the upcoming index revision scheduled for November 30.
Chris Weafer, a strategist at Sberbank CIB said that investors have been
affected by uncertainly over Europe's debt, Chinese growth fears, and the
ongoing budget negotiations in the United States.
Trading volumes on the Moscow stock exchange have remained subdued in recent
months, while investors became more selective, focusing on individual companies
with strong dividends.
The rouble weakened on Wednesday, reacting to a decline in oil prices
, losing 0.3 percent against the dollar at 31.12, and
shedding 0.2 percent against the euro at 40.24. The rouble was
0.2 percent down at 35.22 against the euro-dollar basket.
Russian Markets Latest Net % Change % Change
Change on year
MICEX 1387.39 -7.48 -0.54 -1.06
RTS 1406.22 -11.38 -0.80 1.76
London ADRs 807.40 -2.93 -0.36 3.72
Emrg Mkt Indx 991.61 -4.83 -0.48 8.21
MSCI Russia 745.26 -4.47 -0.60 1.15
Sberbank 88.08 -1.12 -1.26 11.69
VTB 0.05 -0.00 -0.68 -12.36
Gazprom 137.30 -1.00 -0.72 -19.85
LUKOIL 1911.70 -0.80 -0.04 12.29
Rostelecom 116.06 -0.03 -0.03 -23.64
Dollar/Rouble 31.12 0.09 0.28 -3.20
Euro/Rouble 40.24 0.08 0.20 -3.60
Rouble basket 35.22 0.09 0.24 -3.41
DEBT Bid Ask %Rtn Coupon
Russia 10-yr bond 7.06 7.03 0.00 7.60
MONEY MARKET Bid Ask Close
Overnight rate 6.56 7.07 6.38
TABLE FROM POWER PLUS PRO
All data taken from Reuters at 0816 GMT