• Russian stock market daily morning report (September 18, 2015, Friday)

    The results of Fed session formed the headlines today. As expected, the regulator kept the base rate unchanged. At that, the forecast of GDP growth for 2015 has been upgraded, but cut for 2016-2017; unemployment targets have been improved. Inflation and interest ratesí targets have been cut, which provides for a more gradual rate of upping the rate in the future. Generally the results of Fed should provide support to the exchange and commodity markets in a mid-term prospect.

    Main events

    Fertilizersí prices at the domestic market will be frozen until the end of the year.

    Yesterday the Ministry of Agriculture has announced that the producers of mineral fertilizers promised not to change prices for the agricultural consumers until the end of the year. The decision on another price freezing was once again related to the devaluation of ruble. Considering that the major share of the fertilizersí producers sales comes from export selling, the companies within the sector would not suffer much from the decision to freeze prices, moreover, at the back of the started strengthening of the domestic currency the effect of freezing might be minimal as it did happen in 2Q 2015.

    Inter RAO exits Armenian grids.

    Intention of Inter RAO to exit the assets has been caused not only by the alarms regarding the possible privatizing of the asset, but by no chance of forecasting the cash flow of the subsidiary as the tariffs are being regulated manually. Selling the asset for a fundamentally justified price might be positive for the financial activity of Inter RAO.

    Contributed by Veles Capital
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