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Russian stock market daily evening report (March 01, 2010, Monday)

Contributed by Veles Capital

By Veles Capital

Stocks

Market today. Climbing trend resumed at the exchange market on the first day of spring due to the positive foreign background. Share markets of the Eurozone supported the stats on unemployment, which turned out to be better than expected and caused confident growth of the European grounds. Besides, significant support came from the commodity market – oil prices grew due to expectations of U.S. economy recovery and Asian markets and growth of demand for fuel related to that. As a result, the oil sector shares were trading actively (Gazprom, LUKOIL, Rosneft – less active), and also banks (mostly Sberbank, and VTB in a less decree).

Market tomorrow. Growth of the American exchange grounds at the trades open against the background of positive stats on the spending of the citizens, and also the all-time high upping of GDP of Canada, establishes favorable background for the further growth of the Russian grounds. The only thing that might worsen the mood slightly is the drop of ISM Manufacturing index more than expected.
 

Bonds
                                                          
Market today. On Monday the trades in the section of ruble bonds were rather active. Strengthening of ruble and growth of oil cost did its thing. The quotes of the notes within the first-second echelons went high at the open by 20-30 b.p. Among the leaders on the trade volumes we might outline the following issues: MTS-5, Rosselhozbank-3, Sibmetinvest-1,-2, Mechel-5, Lukoil-MB-6 and VTB-5. At the Russian Eurobond market the positive mood prevailed also. Sovereign issue Russia 30 has closely reached the level of 114% of the nominal value, which was last seen in mid January. Against the given background the corporate issues climbed also. In particular, demand was indicated in Severstal 2013, Alfa-bank 2013, Promsvyazbank 2015.

Market tomorrow. Continuation of quotes growth is most likely to occur. A lot will depend on the way the situation with Greece develops and euro/dollar pair as follows. Considering the dynamics of the last-mentioned, the story is not over yet. On Tuesday the new issue by Tatfondbank is to be conducted, which is relatively interesting from the yield view point.

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Net profit of TNK-BP by GAAP in 2009 dropped by 5.7% and formed 5 bn USD. Reproduction of supplies of TNK-BP by PMRS formed 329%, supplies reproduction rate by SEC – 177%. Dividends of TNK-BP, paid off within the second half year of 2008 and 9 months of 2009 formed 3.5 bn USD. (Company)
STC will almost double the investments to the communication infrastructure in 2010. (Company)
AvtoVAZ accounts on upping the output of vehicles to 1.2 mn items annually. (Company)
GAZ Group negotiated restructuring 39.3 bn RUR of debt. (Company)
In January-February KAMAZ upped output of car kits by 39.5%. (Company)
Income of U.S. citizens was lower than forecasts, spending – higher. (Company)
Drop of the ISM Manufacturing index exceeded all expectations in February. (Bloomberg)