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Reports Russia

Russian stock market daily evening report (December 09, 2013, Monday)

December 9, 2013, Monday, 15:14 GMT | 10:14 EST | 19:44 IST | 22:14 SGT
Contributed by Veles Capital


Stocks

Market today. Trade at global grounds today went mainly under the influence of Friday data on US unemployment. Despite the serious improvement of the unemployment estimates, the current estimate is significantly above the target levels of Fed – as a result, the investors currently prefer believing in QE not to be cut in December, and the sum improvement of the situation in the economy serves as a reason for the exchange indices growth. Even the data on industrial production in Germany did not worsen the investors’ expectations – industrial production in Germany for October reduced 1.2% though the 0.7% adding was expected. Weakening of the indicator shows instability of the economic growth even in the Europe’s largest economy and might become a reason of expanding the stimulation program of ECB. The Russian market gained an opportunity today to partially win back the last week’s drop, which was no obstacle to the correction of the oil prices. The shares of Aeroflot still are the growth leaders due to extremely positive financial report, released last week which still allowed the stock to remain among the favorites. Shares of Magnit were climbing on the threshold of tomorrow release of operation results for 10 months of 2013. Stock of Mechel added slightly at the back of more news on signing the covenant vacation on one of the credits from SBERBANK. The top losers were the following: Inter RAO, Rusal and Uralkaliy.

Market tomorrow. After trade closes in Russia, several representatives of Fed will make their statements and given oratory might set the sentiment of the open tomorrow and likely to the whole day as no important macroeconomic releases are planned to tomorrow.


Bonds

Market today. The new set of strong stats on the US labor market, was likely not surprising for participants and the Russian debt market started the week in high spirits. Quotes of the BFL added by the end of the day 30-80 bps, yield reduced 3-10 bps. In the corporate segment buying went on the loans of Norilsk Nickel MB-4, FNC-18, VTB MB-6. Eurobonds also corrected upwards having added about 15-20 bps. Russia-43 added 45 bps to 100.84% of the nominal, Russia-42 – 35 bps to 99.41% of the nominal.

Market tomorrow. Tuesday the market sentiment will be set by the stats on China. In case the data brings no unpleasant surprises, we expect continuation of non aggressive buying.