• Russian stock market daily morning report (September 22, 2015, Tuesday)

    Slight reduction of global exchange indices and the oil quotes this morning (oil is looking down at the back of the news that Iran made another step toward fulfilling the terms of an agreement, having provided samples from a military facility in Parchina to IAEA) will pressure the Russian market. We assume the reaction of the Russian market to the news on the possible changes in taxation of the oil industry is of temporary nature. Supposed measures might lead to the companies shutting down new projects, initially that would be small and middle size deposits. The oil processing industry might also suffer from the new formula: reduced margin of oil-processing plans will make upgrading them complicated. At the meantime, the press secretary of the President of RF has indicated that “there are no exact discussions on the subject, thus there are no decisions made already”. We assume the long-term negative impact of such a decision exceeds any short-term benefits for the budget from it, thus the change is unlikely to be made. Under the current conditions we recommend buying the shares of LUKOIL. Aside that, we assume that the markets’ reduction after the Fed’ session results had been announced was a sort of profit fixation process, meaning that in the nearest outlook the foreign background would be positive for the Russian market.

    Main events

    Liquidation of Templeton Russia and Eastern European Fund.

    Stockholders’ meeting of the fund Templeton Russia and Eastern European, established by M.Mobius, is scheduled September 24. A decision to liquidate the fund might be made in course of the given meeting. The portfolio of the fund holds a number of Russian stocks. We have outlined a list of stocks held by the fund having a volume large vs the daily average volume of trade. We do not exclude a negative impact on the quotes of given companies in case the decision of liquidation of the fund is made and shares are sold to the market.

    FAS offered lower levels of indexing tariffs.

    The new offers of Fed provide for growth of gas tariffs for industrial enterprises by 5%, 6% for citizens; tariffs for electric energy – 8.3% for all consumers, but the citizens – 8.3%. Rather low rates of tariffs upping for gas might pressure the quotes of Gazprom and NOVATEK – generally the tariffs were supposed to be upped 7.5% earlier. At the meantime, the higher growth of electric energy tariffs than supposed earlier might support the quotes of the electric energy segment.

    Contributed by Veles Capital
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