• Russian stock market daily morning report (September 28, 2015, Monday)

    There might be some news this week regarding the matters of withdrawal of the devaluation income of exporters. We assume alarms of the investors regarding the increase of the debt load on the oil companies’ start fading: there are more signs that the government would not take radical action meaning the market had overreacted, which gives space for oil companies’ prices growth, which might pull the entire market upwards. Due to that, we recommend buying LUKOIL.

    Main events

    13 GW-capacity might get a status of a must-run generation for 4 years.

    Despite the fact that the probable volume of a must-run generation was below the previous year’ estimate (18.4 GW), it still is significant. This was providing a status might give grounds for a longer term of suspending loss-generating units. The biggest volumes might be claimed by OGK-2 (818 MW), TGK-1 (574 MW) and Inter RAO (585 MW).

    Uralkaliy has upped the volume of buyback program to 2.26 bn USD.

    At the meantime time Uralkaliy transferred to REPO 12.6% to VTB Capital and gave additionally 7.38% of its stock to pledge to the same bank, thus Uralkaliy manages to avoid the necessity to place an offer to its own holders as the number of shares owned by it exceeds 30%. We assume that probably all the minority stock would be bought, however, from the looks of it, no premium vs the recent buyback (3.2 USD per share) should be expected.

    Contributed by Veles Capital
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