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Reports Russia

Russian stock market daily evening report (August 27, 2014, Wednesday)

August 27, 2014, Wednesday, 16:52 GMT | 11:52 EST | 20:22 IST | 22:52 SGT
Contributed by Veles Capital


Stocks

Market today. Wednesday, the Russian exchange market showed mostly positive dynamics. The summit of Customs Union with president of Ukraine participating did not clear out any ideas on solving the geopolitical conflict in the East of Ukraine. However, the statement that such meeting would be conducted on regular basis introduced positive to the participants' sentiment. Moreover, the statement of Kiev on agreement reached on the gas price offered by the European Commission at the level of 320 USD per 1000 cubic meters of gas within the summertime and 385 USD within the top load period was a positive step made. The given price is closest ti the one that had been offered by Russia.

Extra support for the Russian market came from the upside dynamics of the western indices. American S&P 500 closed at the all-time high level, which had been supported by the posted strong macroeconomic stats on the consumers' confidence and the volume of durable goods orders. European indices supported expectations of the investors on a possible launch of the QE policy.

The quotes of Inter RAO headed the list of top gainers of the day at the back of the posted strong report for 1H 2014. The company managed to reach growth of the major financial estimates at the expense of optimizing load of its capacities, having graded the drop of power energy generation volume, and drop of export and import.

Market tomorrow. Lacking negative news, we expect the upside dynamics to progress at the Russian exchange market until the end of the week within the frames of 1,450-1,470 points at MICEX.


Bonds

Market today. The results of summit in Minsk did not manage to provide significant support to the domestic market. BFL continued losing in price yield grew by another 5-7 bps. At the meantime, the corporate sector showed sideways dynamics.

Eurobonds have added slightly in price at the back of reduction of UST yield. Russia-43 added 40 bps to 103.1% of the nominal value, Russia-23 - 30 bps to 100.55% of the nominal.

Market tomorrow. Today did not bring any significant events, therefore, lacking any strong drivers, the Russian market likely continues moving sideways.