Reports » Russia

Russian stock market daily evening report (November 19, 2009, Thursday)

Contributed by Veles Capital

By Veles Capital

Stocks
 
Market today. The trades were in the negative estimates zone under the affect of the negative external background. The main chips slipped by 2% average. The activity is still focused in Sberbank and Gazprom. Interest appeared in the shares of Aeroflot – the shares of the company were climbing against the background of good operating results.

Market tomorrow. The price reduction on oil might provoke further sale at the market.
 

Bonds
                                                           
Market today. Within the morning hours purchases were indicated at the Russian debt market. Mainly the notes of FLB, issues of Moscow and also the corporate notes (NLMC-MB5, VTB-24, Gazprom-4 and others) were mainly purchased. However, closer to the noon fixation began at the market, which got stronger by the end of the day due to the output of weak stats in the U.S. and the respective drop of the share market. Within the frames of the price reduction the notes lowered by 20-30 b.p. average. Despite that MMC managed to place its debut market bonds extremely low. The resulting coupon made 9.45% annually while the target was 10%. At the Eurobond market the activity reduced following the drop of Russia 30 lower 114% of the nominal. In several corporate issues the quotes were 30-40 b.p. down by the evening.

Market tomorrow. Unlikely the correction lasts long. Most likely next Monday Bank of Russia will once again reduce the interest rate on ruble, which will give strength to the market. There is a threat of dollar cost growth. However, the trend of EUR/USD will finally be formed no sooner than in a week or two.
 

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International reserves of RF as of November 13 grew to 441.7 bn USD. (CB)
The frames of the varying range when the CB provides support to the currency – 35 – 38 RUR for the basket. (Interfax)
Oil export from RF within 9 months grew by 1.2% to 184.3 mn tons. (Rosstat)
Claims for unemployment in the U.S. did not change, growth by 2 thousand was expected. (Interfax)
LUKOIL redirected the development strategy from extraction growth to building up the free cash flow. (Company)
Polyus Gold: Oneksim and Nafta might sell to 5% of the company shares. (Company)
Net profit of Severstal in 3Q 2009 by IAS formed 66 mn USD, EBITDA – 368 mn USD, the company sees the 4Q 2009 and the next year rather optimistically, expects demand recovery. (Company)