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Russian stock market daily evening report (March 02, 2010, Tuesday)

Contributed by Veles Capital

By Veles Capital

Stocks

Market today. On Tuesday the market was mainly moved by the positive from global financial grounds, which was caused by positive stats on the U.S., Canadian, South Korean and Japanese economy yesterday. At noon the market slipped under pressure of oil, but it has won given drop back fast, at that the MICEX index was close to reaching February maximums. Sberbank was climbing at high volumes, and in the second echelon significant upping was indicated on AvtoVAZ due to positive corporate news on debt restructuring.

Market tomorrow. American exchange indices are climbing at the trades open due to expectations of new measures on reducing deficit of budget from Greece. Meaning there are some suppositions of positive open at the Russian market. However the domestic market already is at the local maximums or close to them, and we unlikely will see any grounds for overcoming it tomorrow.
 

Bonds
                                                         

Market today. Growth at the domestic bond market went on. The majority of liquid issues added another 50-100 b.p. in price, and most important, that occurred under terms of high volumes. Mechel MB01 and Akron-3 were once again in focus. Beside, active trades also went on VTB24-1, Bashneft-1, Gazprom-13. There is an opinion that several large players entered the market and that might have been pension funds. Within the notes of the third echelon demand was indicated in UTair-3 and LSR-2. As for the placement of new issue by Tatfondbank, the final coupon has been defined at the level of 11.25% annually. Actually not all have expected that to happen so, having lost at the auction the issues were being purchased at the secondary market. As a result, at the forward market the issue was being traded within the range of 100.20-100.80. At the Russian Eurobond market strong price growth took place also. Following the sovereign issue Russia 30, which has reached the level of 114.65% of the nominal, the entire corporate sector upped by 20-25 b.p. average.

Market tomorrow. After such a strong high the price growth is likely to slow down. Though the funds will unlikely manage to do their thing in one day. So, considering the basically positive foreng conjuncture for the Russian debt market, there still are some suppositions for further climbing.

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