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Russian stock market daily evening report (January 26, 2012, Thursday)

Contributed by Veles Capital

By Veles Capital

Stocks

Market today. Participants were mostly interested in the shares within the bank sector, metallurgy and communication. The shares of VTB, Vozrozhdenie, Sberbank, Chelyabinsk Zink plant were the growth leaders. Large sale went in Uralkaliy, VSMPO-Avisma and PIK. Main foreign markets are trading in the green zone today – that is the positive effect of the good corporate reports in the U.S., statements of U.S. FED on the preserving low interest rate till 2014 and the expectation of the soon end of the negotiations on the Greek debt.

Market tomorrow. We expect the positive mood to preserve at the next trade session

Bonds

Market today. By the end of the day the Russian market showed positive dynamics against the background of the global optimism. Besides the results of FED demand of the risky assets was warmed up by Greece’s creditors having lowered the requirements on coupon, output of good quarter results from the U.S. At the domestic market the quotes growth formed 10-20b.p. and BFL curve lowered by 3-9 b.p. Among the corporate loans the investors preferred issues MTS-5, -8, VEB-8, BFL-15, -18, Bashneft MB-1. Russian Eurobonds added 50-100 b.p. Indicative issue Russia-30 confidently overcame the level of 118% of the nominal and by the end of the trade session it traded at the level 118.68% of the nominal (+95 b.p.).

Market tomorrow. Russian market might close the week at major tune on the wave of global growth of appetite to risk

News briefly

Orders of long-term use goods in the U.S. in December grew 3%, upping by 2% was expected. (Interfax)

Jobless claims in U.S. grew within a week by 21 th, upping by 18 th was expected. (Interfax)

Petropavlovsk in 2011 upped the gold mining by 24% y/y, to 630 th troy ounces. In 4Q 2011 10% y/y less gold was mined – 183 th ounces of gold. (Company)

Adding of oil supplies of Tatneft Group on categories C1+C2 in 2011 formed 27.2 mn tons. (Company)