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Russian stock market daily evening report (February 19, 2013, Tuesday)

Contributed by Veles Capital

Stocks

Market today. European exchange markets showed rapid growth today after business confidence index on the EZ and Germany from ZEW. At that the level of economic expectations of German investors went up in February to maximum level within past 3 years. Today the Asian markets closed in the red zone after the statement of the bank of Japan that the state’s economy remains weak. Shares of the blue chips were the top gainers at MICEX. Notes of Norilsk Nickel added in price due to message on possibility that Udokan might not be purchased, and OGK-2 grew as net profit is expected to grow in 2012.

Market tomorrow. Generally the foreign background is relatively positive for the Russian market. However, by the trade close, quite weak stats came out in Europe on selling automobiles in January, which might arise doubt on the matter of the consumer demand recovery for the long-term use goods. We also expect that the shares of Surgutneftegas might add in price due to plans to build up the share of company in MSCI Russia 10/40, as index funds will be buy shares of Surgutneftegas in order to bring its portfolios into compliance with the indices.

Bonds

Market today. Good stats on Europe inspired the Russian market participants. Rather active trade occurred in the rubble segment on corporate loans. Gazprom neft-12, MCB MB-4 and FNC-21 were in demand. At the meantime, BFL traded near Monday levels. Eurobonds traded sideways while waiting for the American grounds to open. Russia-30 and -42 added 10 bps to 124.45% and 116.54% of the nominal respectively.

Market tomorrow. Wednesday participants will follow the stats release on the new construction in the U.S. In case data confirms the course toward recovery of the real estate market, given news provides extra stimulus to buy risky assets.

News briefly

Production of freight trucks in RF dropped 10.9% in January. Rosstat

Net [profit of Yandex in 4Q 2012 grew 27% yoy to 2.7 bn RUR. Corrected EBITDA upped 30% to 4.3 bn RUR. Company

Actual income of the citizens grew in January by 0.7%. Rosstat

Unemployment level in RF in January formed 6.0%. Rosstat.