10:47Baltika reports 1H 2008 performance
Although we view the Baltika brewery’s 1H 2008 financials as moderately upbeat, they are unlikely to seriously impact the company’s stock valuations in the near term.
Baltika Common shares:
Price: $15,00 Preferred shares:
Price: $10,97
10:44Mosenergosbyt to lose large client
Rusenergosbyt may replace Mosenergosbyt as provider of electricity to the Moscow metro system. The departure of such a large and reliable client would have an adverse impact on Mosenergosbyt activities.
10:41OGK-1 may be taken over in September
The release of information about the approaching completion of a deal for the purchase by Roskommunenergo of a share package in OGK-1 may lend support to the genco's stock valuations, given that the potential buyout price exceeds the current quotations for the company's shares by 73%.
10:39Iran allows MMK to buy stake in Esfahan Steel Company
Iran has permitted MMK to buy a stake in Esfahan Steel Company. In our view, this event may be beneficial for the company's fundamental value as the acquisition of the majority stake would enable MMK to cement its ties with the Iran and boost its presence in the Middle East.
10:35New twist of events in Norilsk
The Onexim group has said in a statement that it has completed consolidating a 16.6% share package in Norilsk Nickel with a view to selling it to Potanin's units under an irrevocable offer. Under the terms of the offer, Potanin's business will buy the share package for USD 10 billion, paying USD 6.5 bn in cash and handing over a 35.2% stake in Polyus Gold for the remaining USD 3.5 bn. The price of the deal values one share in Norilsk Nickel at USD 315 and one share in Polyus Gold at USD 52. If the deal goes ahead, it will be beneficial for Polyus Gold shareholders, who will be able to sell their shares at a price exceeding the current stock valuations by at least 20%. For Norilsk Nickel shareholders, the results of the deal will be neutral, as it is highly unlikely that a buyout offer would be made to these shareholders.
NorNickel Common shares:
Price: $71,97 Common shares:
Price: $71,97
10:33The Fed leaves federal funds rate at 2% The event of the day
After the FOMC meeting, the Fed's federal funds rate was left unchanged at 2.0%. This decision was generally expected by the market, so investors focused their attention on the official commentary. In general, the committee's announcement was again balanced between the risks of a slowdown in economic growth and a speed-up in the pace of inflation. The statement infers that given a continuation of current economic conditions, the Fed is not apt to reduce the federal funds rate, at least at the forthcoming meeting. In our opinion, this decision will be positively perceived by investors in the short-term; however, the Federal Reserve's wait-and-see attitude is not likely to solve the problems of the US economy.
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30.89
