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Russian stock market daily evening report (February 09, 2010, Tuesday)

Contributed by Veles Capital

By Veles Capital

Stocks

Market today. After the gap up at the open, the Russian share market started showing lateral moves with reduced trade volumes. As a result the RTS index has finally climbed up, which can be explained by the common correction to the recent drop, expectations of positive dynamics at the global financial markets, along with growth at the commodity markets.

Market tomorrow. Despite that the drop at the global financial markets was suspended after a strong drop, we expect the trades’ participants will be cautious expecting more global news on the situation in the European Union and further policy of FED.

Bonds

Market today. Depressive mood ruled the market within the first half of the day. Volume of trades was low, mainly notes were for sale. However, growth of euro rate, ruble strengthening and warming at the share market returned the buyers. By the end of the day the notes within the first-second echelons upped by 20-30 b.p. 23rd issue by RZD entering the market was rather loud, which id partially explained by the execution of the forward deals. Also active purchasing was on the shares of the metallurgy workers (MMC-MB2, NLMC-MB-5, Sibmetinvest-1). Severstal MB1 issue was a kind of an exception. The desire of the participants to get rid of it is likely due to the coming placement of two new loans of the company. The day was rather calm at the Eurobond Market. During the day Russia 30 was trading a bit higher than 112% of the nominal without any rapid variations.

Market tomorrow. We assume the current withdrawal is no more than technical correction after a rapid and strong drop. Actual decision on the given problem, meaning the Greek debt, has not been announced yet. So there is a reason to use the current conjuncture for positions fixation only. Given unstable markets makes even the short-term speculations very dangerous.

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