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Russian stock market daily evening report (October 02, 2012, Tuesday)

Contributed by Veles Capital

Stocks

Market today. Having no remarkable news, markets grew mechanically, winning back relatively not bad data on stress-tests of the bank system Spain. Some support came from the rumor on Spain possibly asking for bail shortly. At the Russian market the shares of Mechel were remarkable for their significant drop due to negative 1H 2012 results.

Market tomorrow. Tomorrow market will be focused on the data on the new jobs in the U.S. – ADP Employment Change. Also output of non-manufacturing purchasing managers index (ISM Non-Manufacturing) and PMI of the Eurozone might be interesting.

Bonds

Market today. Nothing interesting occurred at the global markets during the day, so mildly positive mood occupied the markets, being supported by the rumor Spain preparing a claim for bail. Against the given background the ruble debt market closed the day with no significant price changes. Within BFL, buying indicated the following issues: 26208 (+10 b.p.), 26209 (+15 b.p.), sell off – 26207 (-15 b.p.), 25076 (-14 b.p.). In the corporate segment deals still were focused on short bank issues, and loans of Vimpelcom were sold overnight to placement of Megafon. Positive in the Eurobonds remained. Initially the bank sector notes were climbing in price, sovereign issues added 40-50 b.p. each.

Market tomorrow. At the day-time session the trade will likely be flat against the background of no new reasons to grow. In the evening the tone of the markets will be set by the ADP labor report in the U.S.

News briefly

Russia – net profit on Tatneft by US GAAP in 1H 2012 reduced 12% to 35.7 bn RUR. (Company)

Russia – Mechel gained loss by US GAAP in 1H 2012 in the amount of 605 mn USD versus profit a year earlier. (Company)

Russia – KAMAZ upped production 19% to 39.4 th car kits within 9 months of 2012. (Company)