Английский язык. Практический курс для решения бизнес-задач

Simply put, a…… market refers to a market that is on the rise. In such times, investors have faith that the……will continue in the long term. Typically, the country’s……. is strong and……. levels are high.

On the other hand, a…… market is one that is in decline. Share prices are continuously dropping, resulting in a……. trend that investors believe will continue in the long run, which, in turn, perpetuates the spiral. The economy will typically slow down and unemployment will rise as companies begin……. off workers.

Characteristics of a Bull and Bear Market

Although we know that a bull or bear market condition is marked by the direction of……. prices, there are some accompanying characteristics of the bull and bear markets that investors should be aware of.

Supply and demand for securities – In a bull market, we see strong…… and weak……. for securities. As a result…… prices will rise as investors compete to obtain available equity. In a bear market, the opposite is true as more people are looking to….. than……, and, as a result, share prices drop.

Investor psychology – Since the market’s behavior is impacted and determined by how…….. perceive that behavior, investor psychology and sentiment are……. to whether the market will rise or fall. Stock market……. and investor psychology are mutually dependent. In a bull market, most everyone is interested in the market, willingly participating in hopes of obtaining a……. During a bear market, on the other hand, market sentiment is negative as investors are beginning to move their money out of……. and waiting in……. securities until there is a positive move. In sum, the decline in stock market prices shakes investor……… which causes investors to keep their money out of the market – which, in turn, causes the……. in the stock market.

Change in economic activity – Since the businesses whose stocks are……. on the……. are the participants of the greater economy, the stock market and the economy are strongly connected. A bear market is associated with a weak economy as most businesses are unable to……. huge profits because……. are not spending nearly enough. This decline in profits, of course, directly affects the way the market……. stocks. In a bull market, the reverse occurs as people have more money to spend and are willing to spend it, which, in turn……. and strengthens the economy.

How to Gauge Market Changes

The key……. of whether the market is bull or bear is the long-term……., not just the market’s knee-jerk reaction to a particular event. Small movements would only represent a short-term trend or a market……. Of course, the length of the time period that you are viewing will…….. whether or not you see a bull or bear market.

For instance, the last two weeks could have shown the market to be bullish while the last two years may have displayed a bearish……. Thus, most agree that a decided…… in the market should be ascertained by the degree of the change: if…… indexes have changed by at least 15—20%, investors can be quite certain the market has taken a different direction. If the new trend does continue it is because investors are perceiving changes in both market and economic conditions and are thus making…… accordingly.

Not all long movements in the market can be characterized as bull or bear: sometimes a market may go through a period of……. as it tries to find direction. In this case, a series of up and downward movements would actually cancel out gains and losses resulting in a…… market trend.

Source: www.investopedia.com, October 3, 2003 (excerpt)

Terms:

drives, decisions, employment, flat, trend, buy, appreciating, stagnation, fixed income, record, downward, supply, profit, consumers, multiple, individuals, exchanges, performance, depreciating, determine, reversal, attitudes, determinant, bull, trading, uptrend, economy, bear, laying, stock, demand, share, sell, fundamental, equities, confidence, decline, valuates, correction, tendency

Exercise 5. Translate into English.

Обзор рынка: Слово премьера

В среду после заявления премьер-министра Владимира Путина о планируемых налоговых льготах для стимулирования нефтедобычи нефтяные бумаги сразу выросли на 5%, вспоминает ведущий аналитик ГК «Регион» Константин Гуляев. Хотя котировки нефти Brent в течение дня снизились до уровня $123, акции «Сургутнефтегаза» на ММВБ выросли на 10,7%, «Газпром нефти» – на 8,1%, «Роснефти» – на 6,2%, «Транснефти» – на 6%, «Лукойла» – на 5,4%, «Татнефти» – на 3,7%. Акции «Газпрома» поднялись на 2,8% – по мнению Гуляева, здесь сыграла роль передача компании без конкурса месторождений с запасами порядка 3 трлн куб. м газа из фонда стратегических месторождений.

Гуляев считает, что рынок также подогрела статистика по росту потребительских цен в США за апрель, оказавшаяся лучше ожиданий: 0,2% против 0,3%. А Freddie Mac за I квартал показала убыток в $151 млн, т. е. существенно меньше прогнозов. В результате индекс ММВБ вырос на 3,5% до 1904,2 пункта, превысив уровень закрытия 2007 г., а индекс РТС вырос на 6,9% до очередного исторического максимума в 2406 пунктов.

Акции «Уралкалия» на ММВБ выросли на 3,4%, «Норникеля» – на 2,6%. Во втором эшелоне обыкновенные акции «Ленэнерго» подорожали на 12,5%, «Омскэнергосбыта» – на 11,2%, Волжской ТГК – на 10,6%. Тем не менее, по мнению начальника аналитического отдела компании «Атон» Андрея Верникова, рынок все еще перегрет и есть риск снижения индекса РТС до уровня поддержки 2290—2250.

По словам начальника управления конверсионных и межбанковских операций банка «Зенит» Александра Карпова, на международном рынке наблюдалась высокая волатильность курса доллара в диапазоне $1,54-1,55/евро, на российских же площадках доллар вырос с 23,81—23,82 руб./$ до 23,91 руб./$, т. е. превысил уровень поддержки ЦБ примерно на 0,12 руб. Как полагает Карпов, спекулянты, продававшие большие объемы долларов Центробанку в апреле, решили частично закрыть короткие позиции. Ставки по однодневным кредитам не превышали 4% годовых.

Источник: Ведомости, 15.05.08

Lesson 33 Valuation of Russian Companies

Read and translate the text and learn terms from the Essential Vocabulary.

Company Handbook

Figure 1. Renaissance Capital Stock Focus List

Recap of Stock/Sector Performance Year-to-Date

Driven by the ever growing domestic liquidity, the Russian stock market has risen strongly over the year, gaining 26%. The top performers in 2003, similar to in 2002, were second– or even third-tier stocks. The only two «blue chips» to feature in the top 20 best performing companies – Mosenergo and UES – almost doubled in value year-to-date (this is a stark reversal of the situation in 2002 when each of these stocks lost about 25%). 75% of the top 20 best performing stocks come from the utilities sector, implying that the game for control of the sector, which started in 2002, is still on.