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Russian stock market daily evening report (February 21, 2013, Thursday)

Contributed by Veles Capital

Stocks

Market today. Against the background of U.S. exchange market being overbought, output of FED’s minutes Wednesday evening triggered correction of the American indices. Some members of the open markets committee (FOMC) are alarmed that buying notes at the secondary market might erode stability and call for cutting the volume of buying not waiting for the labor market to improve. Markets took that as a threat to continuation of QE3 and used it as a reason of profit taking. Extra negative introduced by PMI indices in EZ and Germany. Russia showed drop on the entire range of the blue chips.

Market tomorrow. We assume the quotes drop currently is of technical character only – after overbuying was eased, the American market probably proceeds with an upside trend. Tomorrow final data on GDP of Germany for 4Q 2012 and IFO indices release should be interesting.

Bonds

Market today. Prices of the Russian bonds slipped following the oil quotes drop and global worsening of the demand of risk. In ruble segment, sale initially involved BFL, which lost up to 70 bps in price. The curve grew 5 to 10 bps. In the corporate segment pressure indicated on the issues Rosbank MB-5, MB-6, Systema-3, and RSHB-3. In the Eurobonds loss formed 30-50 bps average. Russia-42 dropped 100 bps to 114.31% of the nominal, Russia-30 – 60 bps to 123.44% of the nominal.

Market tomorrow. Friday the market motion will be determined by the character of the stats released this evening on macrostats. In case estimates do not manage to justify hopes, run from risk continues at the market.

News briefly

Germany – Purchasing managers manufacturing index formed 50.1, 50.5 was expected. Interfax

Germany - Purchasing managers non-manufacturing index formed 54.1, 55.5 was expected. Interfax

EU - Purchasing managers manufacturing index formed 47.3, 48.5 was expected. Interfax

EU - Purchasing managers non-manufacturing index formed

USA – the number of initial jobless claims formed 362 th, 355 th was expected. Interfax

USA – The number of secondary claims for unemployment formed 3,148 th, 3,150 th was expected. Interfax

Russia – the net profit of Transcontainer in 2012 by RAS upped 38% to 4.8 bn RUR. Company