• Russian stock market daily morning report (September 17, 2015, Thursday)

    Western trade grounds closed the trade session in the green zone. Asian indices showed upside dynamics on Thursday morning. As we expected, the report on the oil reserves in the US accompanied by the reduced level of the oil extraction have supported the oil quotes, which managed to fixate above 50 USD per barrel. The given factor will definitely provide support to the Russian market at Thursday open, however, generally we expect sideways dynamics as the participants of the market prefer to refrain from active operations until the decision on the rate has been announced.

    Main events

    Rosimuschestvo and the government of Bashkiria made a stockholders’ agreement regarding Bashneft.

    Stockholders agreement between Rosimuschestvo and the government of Bashkiria provides for mutual decision-making regarding Bashneft’ equity carve-out; dividends’ payoff coefficient forms minim of 25%. We assume the news on stockholders agreement is mildly positive for Bashneft – given cuts the risk of selling the company to an unfriendly minority holder, besides, we assume there is a high probability of the coefficient of dividends payoff exceeding the minimal volume of 25%. Conversation of the preferred stock into the common stock possible in a long-term prospect is positive for the quotes of the preferred stock.

    Contributed by Veles Capital
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