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Russian stock market daily evening report (January 14, 2013, Monday)

Contributed by Veles Capital

Stocks

Market today. Asian indices showed rapid growth due to the news on improvement of the China’s trade balance. Against given background the Russian and European markets opened with gap upwards. At MICEX shares of OGK-2 were the growth leaders (due to expectations of additional emission buyback above market), shares of steelmakers (due to iron ore and rolled metal price growth in Asia) were the growth leaders too. Shares of Uralkaliy are adding after news on singing a large contract with Chinese partners.

Market tomorrow. Report by the head of the U.S. FED Bernanke on the monetary policy of state is expected. Possibly his statement sets the course of trade until the end of the week. Message of MarketWatch on the 5-year high inflow of assets into stock funds in early 2013 may indicate the revision of attitude towards shares. That might mean that investors are ready to take higher risks and bet on economy growth – there may be a firm positive trend at exchange grounds soon.

Bonds

Market today. Domestic market took a calm start of the week and the main volume of deals focused on BFL segment. The long end of the curve grew 5 to 10 bps, yield at the duration up to 3 years reduced 1-3 bps. The activity in the corporate segment was not high. The most expressive trade volume went on Rosneft-5, Vimpelcom-2, -4 and in the notes of RSHB. By the end of the day Eurobonds were mixed too. Loans of Gazprom, VEB and Vimpelcom were under pressure, but the issues of Sberbank, RSHB and sovereign Eurobonds were adding in price. At the end of the day-time session Russia-42 was trading at the level of 122.04% (+90 bps), Russia-30 – 127.11% of the nominal (+55 bps).

Market tomorrow. The market might show mixed dynamics in Tuesday due to investors expect evening stats on the U.S.

News briefly

Industrial production in EU in November 2012 was unexpectedly 0.3% down mom for the third month straight. Eurostat

X5 Retail Group increased sale 8.6% yoy to 134 bn RUR. Company

Enterprises of RusAl cut the shipment of aluminum in 2012 via railways by 2.6% yoy to 2.45 mn tons. RZD

Industrial production in Italy in November 2012 reduced by 1%, 0.2% down was expected. Bloomberg