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VTB Down on Discouraging Forecasts
VTB broke another record of quotes’ decline once it dropped 1.5-percent below the placement price at the yesterday’s trading on discouraging recommendations of Goldman Sachs. Analysts of the latter were the first to urge to sell VTB stocks despite the aggressive recent support for their market.
Goldman Sachs was the first investment bank that recommended to sell VTB yesterday. As a result, VTB dropped on MICEX 1.5 percent below the placement price (13.60 kopecks) to close at 13.34 kopecks. VTB’s GDR lost 1.14 percent to $10.42 on LSE.
The bank sector of Russia is very risky today, Goldman Sachs analysts made clear in their report that turned out so crucial for VTB. The potential risks, the analysts went on with their unpromising forecast, could be blamed on expansion of Russia’s banks in general and VTB in particular. For VTB, the risks could root in the accelerated development of retail segment and integration of the recently acquired assets.
“It was the first time that recommendations of such kind were released in respect of VTB,” said Uralsib analyst Leonid Slipchenko. “UBS and Troika Dialog recommend to keep VTB’s stocks; Alfa Bank, Deustche UFG and Aton – to buy them.”
During the so-called people’s IPO of VTB that was held in May, the price for each of its stock was fixed at 13.6 kopecks ($0.00528). The cost of GDP that corresponds to 2,000 stocks was $10.56. VTB’s capitalization reached $35.6 billion after the placement, which was arranged by Citibank, Deutsche Bank, Goldman Sachs and Renaissance Capital.
www.kommersant.com
All the Article in Russian as of Aug. 08, 2007
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