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Reports Russia

Russian stock market daily evening report (August 04, 2014, Monday)

August 4, 2014, Monday, 16:59 GMT | 12:59 EST | 21:29 IST | 23:59 SGT
Contributed by Veles Capital


Stocks

Market today. The Russian exchange market returned on Monday to Friday levels at the back of lacking significant events that might have affected the dynamics of the domestic market. The exchange ATP markets showed neutral sentiment today. The major European grounds traded mainly in the green after the Sunday announcement of the plan of rescuing the Portuguese Banco Espirito (SA), which might cost 4.9 bn RUR to the state.  Trade at the futures market of the US also went in the green zone. Exchange grounds of america showed insignificant growth at the open. Oil prices were stable today. Investors are waiting for the new macrostats from the US, which would confirm strengthening of the economy of state. Monday profit fixation at the Russian stock exchange still is provided by the geopolitical uncertainty. Aside that, the alarms on the prospects of economies development in terms of cutting stimulation by Fed establishes a complicated background, which also includes the default in Argentina, worsening of the macroeconomic estimates in China, military conflict between Israel and Palestine. At the meantime, Dobrolet low-cost airline has suspended its operation today due to European counteragents having refused from fulfilling their liabilities to the airline - leasing deals had beeb cancelled, same as contracts on technical maintenance, and insurance for jets, and providing navigation information. Due to given fact, the shares of the principal holder of the company - Aeroflot - are loosing 0.61% today.
The stock of MTS (+1.47%) was among the top gainers today at the back of the news on intermediate dividends for 1H 2014 in the volume of 6.2 RUR per share, which forms about 2.2% of their current cost. Besides, the notes of Magnit (+0.64%) managed to add against the market due to the news on the BoD having recommended paying off intermediate dividends for the first half year in the volume of 78.3 RUR per share, which forms approximately 0.85% of the current quotes of the company.

Market tomorrow. We expect that tomorrow the domestic stock market shows no single trend and opens mainly in the red, however, a technical bounce is possible in the afternoon.


Bonds

Market today. Lacking important news from the West or on the situation in Ukraine, the Russian debt market was consolidating on Monday. Not aggressive buying went inBFL, yield grew 2-5 bps. At that the corporate loans traded near their former levels. Eurobonds have also traded near their former levels. Russia-43 remained at the level of 100.44% of the nominal, Russia-23 - 98.8% of the nominal.

Market tomorrow. Stats on PMI index non manufacturing in China and Russia might affect the investors' sentiment. The numbers are to be posted at the beginning of trade. In case the stats introduce no surprises, the debt market will likely be calm.

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