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Russian stock market daily evening report (February 17, 2010, Wednesday)

Contributed by Veles Capital

By Veles Capital

Stocks
 

Market today.  Consolidation was indicated at the Russian share market after growth yesterday. Since morning against the climbing trend was indicated at the Russian share market and far abroad after the output of stats on industrial production and the number of newly-built houses in the U.S. in January, Russian participants preferred to fixate a share of profit they accumulated within the recent days.

Market tomorrow.  As a forecast of the open, we might suppose further consolidation at the current levels with the possibility of getting high from it. We assume the technical picture of is not favorable to growth by 2.5-3% and growth might be executed till the end of February. At the same time at the end of trades on Wednesday, the commodity markets are signaling slipping at the very beginning of trades on Thursday.
 

 
Bonds
                                                          
Market today.  A rather active day in terms of turnover volumes with prevailing positive mood. Besides the global growth of appetite to risky assets, strengthening of the Russian currency is favorable to the ruble bonds. Liquid notes grew in price by 15-20 b.p. average. Against the triple over-demand at the placement of the new issue of Severstal, increased demand was also for the issues that are already circulating the market, MB-1 in particular. Also active interest was for the following notes: Sistema-2, TMK-3, Bashneft-3 and RZD-10, -13. At the market of Russian Eurobonds the quotes upping was indicated also. So, sovereign issue Russia 30 has closely reached the level of 113% of the nominal value.

Market tomorrow.  As we expected the high demand at the primal market pushes the secondary market to climb also. We assume the situation will not change till the end of the week.
 
 

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The volume of industrial production in the U.S. grew in January by 0.9%, higher than forecasted. (Interfax)
The number of newly-built houses upped in the U.S. in January by 2.8% and totaled 591 thousand houses in annual terms, higher than expected. (Interfax)
TNK-BP will direct 1.8 bn USD within the coming 3 years to execution of large projects. (Company)
Rosprirodnadzor recommended Rosnedra to call of the license on Kovitkinskoe deposit of TNK-BP. (Interfax)
Capital expenses of Polyus Gold will exceed 600 mn USD. (Interfax)
In January 2010 transfered 784.6 thousand passengers, that is 23.3% higher than the estimate of similar period of the previous year. (Interfax)
Rosinter is conducting SPO on the low border of the price channel – 10.5 USD per share. (Interfax)