The main catalyst for positive dynamics of the generating sector was the news about the launch of the market power

Written by admin on October 13th, 2009

As a result of trading Monday, the MICEX index added 2,8% electricity and closed at around 2 346 points, with trading volumes exceeded the trade turnover of the previous trading session. Stock Quotes largest companies in the sector have demonstrated before, basically, the positive dynamics: FGC shares went up by 3,7%, paper RusHydro - by 1,4%, shares IDC Holding - on 0,1%, paper Mosenergo fell 3.3%, and stock quotes, Inter RAO rose by 2,3%.

We pay special attention to the dynamics of the shares WGC, which on Monday on average gained 17.5%, with the most significant growth was led by OGK-5 (30,6%). The average growth rate of stock priceof other generating companies were on the eve of 2,4%.

We believe that the main catalyst of positive dynamics of the generating sector was the news about the launch of market power. At a fee for power accounts for a significant share of the proceeds of wholesale generating companies, compared with the structure of the proceeds of thermal generation companies that have a large share of the proceeds is formed by supplying heat.

According to our estimates, the current regulated tariffs for power in at least two times lower than the fair level of payment.

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