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Russian stock market daily evening report (February 27, 2013, Wednesday)

Contributed by Veles Capital

We expect that in the first half of the day the trade at MICEX goes green – the market will be winning back the results of trade in the U.S. and the statement of Bernanke. However, after trades opened in Europe at noon (MSK) the news flow from Europe, Italy mainly, will set the mood.

Main events

Forced control of tariffs might lead to the industry loosing its investment appeal

President of Russian Federation Vladimir Putin ordered to limit annual raise of bill for utility services at 6%.

Head of MED Andrey Belousov assumes gas tariffs might be corrected as housing and municipal services’ tariffs were limited

Possible decrease of plans on growth rates of gas tariffs might become an additional factor to pressure the quotes of Gazprom. Nevertheless, we assume that even if revised, the growth rates of gas tariffs are at the level above inflation.

Office of RUSAL was searched yesterday

The amount of claims of the tax inspection is incomparable to the expected sales of Rusal, so we assume the market has overreacted. Moreover, the search was conducted in the office of one of the subsidiaries of RUSAL and did not involve RUSAL itself. We suppose that the quotes recover soon.