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Reports Russia

Russian stock market daily evening report (July 11, 2014, Friday)

July 11, 2014, Friday, 15:56 GMT | 10:56 EST | 19:26 IST | 21:56 SGT
Contributed by Veles Capital


Stocks

Market today. Trading on the Russian stock market today are volatile, the reason for that served as external news background with global sites caused by concerns about the stability of the financial system in Portugal. This morning was published statements of the Federal Reserve Bank of St. Louis that the regulator may raise interest rates sooner than expected. U.S. stocks fell in early trading on Friday amid published accounts of companies. During the day, U.S. index futures showed a slight increase. Asian stock markets today are not unified dynamics observed. Oil became cheaper.

By the end of the trading day the domestic stock market reached 1,500 points on the MICEX index. Of corporate news today, the largest decline in the still were Mechel (which is facing bankruptcy in the near future). Rostelecom also reduced due to the cutoff of the registry under the dividend.

We believe that the stock market at the opening on Monday will not have a single dynamic, but the auction will take place mainly in the red zone on the background of the upcoming dividend cutoffs LUKOIL, Gazprom, Surgut. In addition, on July 16 we will know the decision of the EU summit on the introduction of a new round of sanctions against Russia.

Market tomorrow. We assume that the stock market at the opening on Monday will not have a single dynamic, but the auction will take place mainly in the red zone on the background of the upcoming dividend cutoffs LUKOIL, Gazprom, Surgut. In addition, on July 16 we will know the decision of the EU summit on the introduction of a new round of sanctions against Russia.


Bonds

Market today. Domestic market continued to decline, despite the lack of new negative news. OFZ lost an average of 30-50 bps, the yield increased by 4-7 bp In the corporate sector while activity remained high, which deterred quotes near the levels Thursday. Eurobonds traded sideways. Russia-43 sank 5 bp to 107.2% of par, Russia, 23 - remained at 104% of par.

Market tomorrow. Monday is not planned any major events, so the beginning of the week, probably will pass quietly. At the same time the whole week will be filled with important stats publications and corporate reports, so expect increased volatility.