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Russian stock market daily evening report (May 04, 2010, Tuesday)

Contributed by Veles Capital

By Veles Capital

Stocks

Market today. Despite the American grounds having closed positively, the Russian share market dropped on Tuesday following Asia. The data on industrial production growth slowing down in China was the reason for that. Also negative was added by the oil prices drop and the drop of the retail sale in Germany.

Market tomorrow. We assume tomorrow bears will be dominating at the market, which is indirectly proved by the open of the American trades and uncertainty relating Europe is relatively high.

Bonds

Market today.  As it should have been expected, the activity at the ruble bonds market between the holidays was minimal, due to more than a half of the participants went away for the holidays. Nevertheless, that did not stand in the way of the quotes to reduce by 30-40 b.p. averagely under the impact of the global negative. The most significant pressure of the sellers was indicated in the market issues of Severstal (2, 4), Mechel-4, Moscow-48, 68, 70, 72. At the Russian Eurobond market the sellers were prevailing also. Sovereign issue Russia 30 lost more than 150 b.p. since the open and lowered to 113.4% of the nominal.

Market tomorrow.  The market is rather thin, so speaking about any kind of trends is early. At the same time the ruble liquidity is still there, which means the market will not go beyond the recent local minimums.

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