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Reports Russia

Russian stock market daily evening report (May 29, 2014, Wednesday)

May 28, 2014, Wednesday, 18:42 GMT | 13:42 EST | 22:12 IST | 00:42 SGT
Contributed by Veles Capital


Stocks

Market today. The Russian exchange market showed mild growth on Wednesday, having partially won back tuesday loss. Note, that the factor of instability at the east of Ukraine is gradually losing its value for the domestic market. The shares of Inter RAO (+8%) seem to be better than the market, while the volume of deals exceed the weighted average volume of trade. Probably the investors started gradually returning back to the shares, not into RAO but the other energy names too, which have recovered less than early March.

Market tomorrow. We assume that until the end of the week the trade is likely to be flat within 1410-1435 points at MICEX, as the foreign background will be neutral lacking the macroeconomic data. The oil quotes showed reduction by 0.65%, which definitely will not add optimism to the participants of the market on wednesday.

Tomorrow Lukoil will post its consolidated report for 1Q 2014. The market participants expect growth of the company's net profit within the frames of 6% vs the 4Q 2013 results, which accompanied by growth of dollar might grade the effect of re-estimation of currency credits significantly. At that the debt load of the company is significantly lower than in majority of the Russian oil companies. However, comparing to the estimate for 1Q 2013, the net profit might reduce 16%.


Bonds

Market today. Tension in Ukraine continued pressing the domestic market. At that absence of new negative signals prevented further sale. BFL has mostly reduced at the short end of the curve, yield grew 1-4 bps. At the long end we have on contrary watched buying, yield reduced 1-6 bps. Eurobonds continued climbing due to no further escalation of the military conflict. Russia-43 added 85 bps up to 105.3% of the nominal, Russia-23 grew 103.37% of the nominal.

Market tomorrow. Conjuncture of the Russian market did not change much, therefore the market dynamics will still be reflecting the news from Ukraine.