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Russian stock market evening report by Veles Capital (June 29, 2009, Monday, 4.00 p.m. GMT)

Stocks
 
Market today. The market was lightly volatile and moved mainly under the impact of the external factors. The most serious effect was made by the oil prices, having leaded to quotes growth, and also the statement by Kudrin and the unnamed source in MED relating the Russian economy, which leaded to sale at the market. Gazprom felt good, having added against the background of news on extraction volumes climbing.

Market tomorrow. Tomorrow the market might open neutrally – the oil has added a bit, but the forecasts on domestic economy are pessimistic.
 

Bonds
                                                           
Market today. Totally the beginning of the week at the debt market was rather calm. That is obvious due to the end of the quarter coming soon. The main event was the result of Gazprom’s two new issues placement. Despite the rather low cut-off at the forward market the notes grew by 30 b.p. higher than nominal. We do not exclude that the market was warmed up by the organizers, which bought back a share of loan from themselves. At the secondary market the notes of Tyumenenergo, and also URSA-7 and Hydro-WGC were interesting. At the Russian corporate Eurobond market the prices were slightly higher, which is explained by the positive dynamics of sovereign issues prices.

Market tomorrow. The last trading day of July will likely be similar to today. At the same time we might suppose considering the results of the latest placements, that the secondary market has new capacity for growth to continue.
 

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MEDT forecasts drop of GDP of RF in 2009 by 8.5% versus 6%, announced earlier, growth by 0.1% in 2010. (Interfax)
MEDT worsened the forecast of industrial production drop in RF in 2009 to 12.5% from 9.3%. The forecast on inflation has been lowered to 12-12.5% from 13%. (Interfax)
Extraction by Gazprom grew by 57 mn cubic meters per day, for the first time in a month having exceeded the level of 950 mn cubic meters. (CDD FEC)
Lenenergo upped the IAS net profit in 2008 by 43%. (company)
MTS attracts credits for 413 mn Euro for the development of networks. (Interfax)
AvtoVAZ restructured the bridge-credit Sberbank for 4 bn RUR. (Aleshin)
GAZ will fire 6.5 thousand employees this summer. (Interfax)