Tattelecom's financial results for the first half of the year were mixed

[tanjimajuha20]

During the current week, the share price of PJSC Tattelecom has almost doubled, by 93%. The company's quotes peaked on September 6, when the price of the securities reached 1 ruble 71 kopecks. By the end of the trading session, the price began to decline, reaching 1 ruble 49 kopecks by the close. On September 7, the price continued to move downwards.

Pavel Gavrilov, an expert on the dominican republic whatsapp resource stock market at BCS World of Investments, believes that there are no specific reasons for the growth of Tattelecom shares in recent days, and the growth is due exclusively to speculative manipulation: "According to our observations, such a situation is increasingly common in third-tier shares, and this began around the fall of last year. The rises of the last year are not typical, we see that there are more of them, and the growth is tens of percent, and most often - unfounded. The exchange is working to regulate such rises, investors should be careful or even avoid such stories without obvious reasons for buying."

. Net profit was RUB 1,094.4 million compared to RUB 1,248.4 million a year earlier. The company explained the decline in profit by its intention to maintain tariffs in the context of rising costs for equipment, materials, and employee salaries. However, consolidated revenue for the first half of 2023 was RUB 5,278.7 million, while for the same period last year it fell short of RUB 5 billion. At the same time, on August 28, when Tattelecom announced its financial results, stock prices remained virtually unchanged.

Nevertheless, at a press conference dedicated to the announcement of the Kazan Digital Week forum, Tattelecom CEO Airat Nurutdinov called the growth of the company's shares a logical result of the new management's activities. According to him, Tattelecom's capitalization has been growing since 2019 and will continue to do so.

The Central Bank of Russia also sees an increase in the use of stock price manipulation practices on the stock exchange. Thus, in the first quarter of 2023, as many incidents were recorded as in the whole of 2022. Among the companies that suffered from such manipulations, the Moscow Exchange named PAO Rosseti Yug, PAO GIT, PAO Permenergosbyt and PAO Saratovenergo.

In the analytical material of the Bank of Russia "Overview of Financial Market Risks", which was released in July 2023, a significant increase in fraud cases, including stock price manipulation, is named as one of the dangerous trends. One of the forms of such manipulation is the pump and dump scheme, "pumping and dumping" - an artificial impact on the price of an asset, which is achieved through aggressive operations in the direction of the desired price movement, or information is disseminated about the asset, which is often not true, but motivates a large number of investors to simultaneously buy or sell certain assets.

This scheme is used not only for stocks, but also for cryptocurrencies. "With the advent of thousands of "junk" coins and tokens, the Pump and Dump scheme came to the cryptocurrency market. Employees of the Imperial College (London) back in 2020 conducted an analytical study that showed that such events in the crypto market took place at least twice a day, and the organizers earn about $7 million on them monthly. Since then, the number of "junk" cryptocurrencies has only grown along with the profit from such a strategy. But if regulators are trying to fight them in the stock market, then in crypto, where there is no regulation in principle, it is impossible to resist them," warn Alexey Sokolov, Director of the FINAM Training Center, and Nikolay Solabuto, Managing Director of Finam Management.

"One of the features of recent times is a bit of "gamification" of certain niches in the market. I can't say that this is a mass phenomenon, but nevertheless it is gaining momentum, we pay attention to it. When in our echelons, where there is not much liquidity, investors start playing a game - let's speed up the paper, who will jump out first, let's try to earn something on this. But still, the stock exchange is not a casino. And of course, here we will work with the Moscow Exchange to ensure that such practices stop. We have an effective barrier against insider trading and against common forms of manipulation," said Deputy Chairman of the Central Bank Philipp Gabunia at the conference "Capital markets: Russia".