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Russian stock market daily evening report (January 15, 2013, Tuesday)

Contributed by Veles Capital

Stocks

Market today. Trade at the global grounds went through the red zone today. Data on GDP of Germany for 2012 was the reason to correct – GDP grew 0.7%, which provides for the reduction of GDP in 4Q by 0.5% versus the 3Q. In the evening extra negative came from the production activity index in New York – Empire Manufacturing formed -7.78 points, while 0.0 changes was expected. Against the given background, the American indices opened with correction – the positive data on the retail sale for December did not save the day. Almost all the blue chips were correcting at the Russian market.

Market tomorrow. Tomorrow output of the corporate reports – Goldman Sachs and JP Morgan – might become the main driver of the markets. For now the American banks output positive reports – we might hope for the tomorrow’s data being of support for the bulls. As for the macrostats, note the data on industrial production in the U.S. in December and output of the Beige book.

Bonds

Market today. Following the mood worsening at western grounds, sale began at the local debt market. The most liquid BFL by the results of the day have actually lost about 30-40 bps in price, yield grew 3-6 bps. In the corporate segment the pressure was on Vimpelcom-1, -4 (-45 bps). The Russian currency bonds market had a calm day. The majority of issues traded at Monday levels and the sovereign segment was the only one showing buys. Russia-42 added 50 bps to 122.6% of the nominal, Russia-30 – 15 bps to 127.26% of the nominal.

Market tomorrow. Domestic market will be referring to the results of the auction of the Ministry of Finance. Investors into the currency loans will be winning back the output of unsatisfying results on industrial activity in the U.S. along with the retail sale, so correction is possible.

News briefly

Russia – according to association of European business, car sale in 2013 will be at 2012 level. Interfax

Russia – net profit of Sberbank by RAS for 2012 upped 7% to 344 bn RUR. Company

USA – Empire Manufacturing formed -7.78 points, it was expected to grow to 0.0 points versus 8.0 points in December. Interfax

Germany – GDP within 2012 grew 0.7%, growth by 0.8% was expected. Interfax.