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Russian stock market daily evening report (March 11, 2010, Thursday)

Contributed by Veles Capital

By Veles Capital

Stocks
 

Market today. Calm trades almost with no idea with narrow variations of quotes took place at the market today. The oil, foreign markets, stats on the U.S. - all given factors did not provide optimism to the investors. The most interesting motion was on Uralkaliy due to statements by Sechin on the matter of export duties for fertilizers not being considered yet.

Market tomorrow. Totally within the previous day nothing new occurred at the market. Evidently the trades will be similar tomorrow and the stats only might change the picture.
 

Bonds
                                                          
Market today. On Thursday the Russian bond market indicated high volatility. So, the morning continuation of the rally changed into correction on the most liquid issues in the afternoon without a reason. As before the most active trades went on the metallurgy sector: Severstal MB-1, Sibmetinvest-1, -2, Mechel MB1. Also active trades went in the state notes section, in particular on the OFZ of the following series - 25060, 25062, 25063, 25065, 25070. At the Russian Eurobond market anxiety turned into calmness. Russia 30 closed 25 b.p. lower than the previous close.

Market tomorrow. We assume the correction that was indicated today was passing and likely that was due to the profit fixation due to the ruble strengthening. Another reduction of the interest rates by CB is coming, possibly being sharper than usual 0.25 p.p., due to the increased pressure on the ruble basket cost.
 

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International reserves of RF as of March 5 formed 436.9 bn USD. Budget deficit in January-February formed 194.62 bn RUR, inflation from March 2 to 9 totaled 0.2%, from the beginning of the year ?? 2.7%. (CB, Ministry of Finance, Rosstat)
Number of claims for unemployment in the U.S. dropped within a week by 6 thousand (down by 9 thousand was expected), deficit of foreign trade reduced in January to 37.3 bn USD (upping to 41 bn USD was expected). (Interfax)
Zero rate for the East Siberia will remain till the decision on the tax system in the region is elaborated. (Sechin)
Surgutneftegas will up capital investments to 118 bn RUR in 2010. (Bogranov)
TGC-1 upped the output of power energy by 7% in January-February. (Interfax)
Government of RF is not considering the matter of 15% duty for potassium chloride for now. (Sechin)