Russian stock market daily morning report (July 28, 2015, Tuesday)

Considering the most likely progressing reduction of the rate of ruble and oil, the non-oil exporters’ stocks seem to be most profitable.


Main events

X5 Retail Group bought the chain of 100 groceries in Orenburg Region.

Considering the sum trade spaces of the purchased chain (36.7 K sq m), the average space of one location of “Sosedushka” (367 sq m) is exactly the same as the average space of Pyaterochka (366.3 sq m), which makes integration easy. The share of purchased spaces is relatively small in the total volume of the group (1.42%), however, entering the new regions of presence at the expense of buying already operating chains might make brand awareness easier and help occupying profitable grounds.

RAS net profit for 1H 2015 dropped 45% to 18 bn RUB.

RAS net profit for 1H 2015 dropped vs the similar period of the previous year 45% down to 18.065 bn RUB. Profit reduction resulted from sales dip at the back of oil processing volumes reduction caused by the tax maneuver and growth of production cost.

Contributed by Veles Capital