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

Contributed by Veles Capital

By Veles Capital

Stocks

Market today. After the holidays growth got suspended at the Russian share market. Following Asia and European trading grounds, along with the drop of oil prices, the domestic indices were correcting down by 1% in the first half of the day. Mainly the oil section was dropping. In the second half of the day the drop suspended, and the market went laterally and continued trading within the psychological 1,500 and 1,400 points of the RTS and MICEX indices respectively.

Market tomorrow. Against the background of absence of fundamental ideas and oil prices correction, we expect the overheated Russian market to continue moving laterally with slight negative trend. Speculators will be dominating.

Bonds

Market today. The beginning of the week was rather active. At the domestic market the positive trend appeared. The quotes of the most liquid issues grew by another 10-20 b.p. average. We might outline increased demand in the issues Moscow-49, -62, Sibmetinvest-1, -2, RZD-15. Against the given background the new issue by NLMC that is trading at the forward market seemed to be a lot weaker, which might be explained by the low yield of the placement. Things were calm at the Eurobond market. Sovereign issue Russia 30 has once again reached 114.65% of the nominal.

Market tomorrow. On Wednesday growth will likely continue. The already circulating issues of Mechel are worth paying attention to. On the threshold of the new placement good movement on them is possible.

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