• Russian stock market daily morning report (August 24, 2015, Monday)

    This morning we expect the Russian indices to continue slipping. US market closed Friday with a remarkable dip – S&P dropped for the most for past 4 years. The stock markets of the Middle East states dropped over 5% Sunday. Today morning, the global grounds’ dip progressed: Shanghai Index lost over 8%, commodities’ prices dropped down to a 16-years’ lowest, WTI is trading below 40 USD per bbl, Brent – below 45 USD. The oil quotes drop is provided by the intention of Iran to build up extraction “by all means” in order to protect its share at the oil market. At the meantime, Iran supports the call of the other OPEC states to hold out an emergency session of the organization in order to discuss the possible measures to respond to the progressing slip of the oil prices. News that China has allowed several pension funds to invest assets into the stocks and that People’s Bank of China considered the steps to direct additional liquidity into the bank system in order to support the crediting and prevent outflow of capital from the state at the back of the turmoil at the market has provided no support to the markets. At the meantime, euro proceeds strengthening vs dollar at the back of the changed expectations regarding the Fed rate.

    Main events

    Today Uralkaliy is to post IAS report for 1H 2015.

    According to the consensus, 1H net profit of Uralkaliy is expected to grow in dollar terms by 46% to 542 bn USD. From the viewpoint of the quotes dynamics of Uralkaliy, the report will be less important if compared to the importance of the decision of its Bod on the matters of listing the company’s GDR at LSE and the possibilities of launching a new buyback program: given matters are to be considered by the board of directors today. Note that the expectations of a possible buyback have mainly been accounted in the company’s stock already as it showed significant growth recently and in case the hopes are not justified, the quotes are likely to show rapid dip.

    Contributed by Veles Capital
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