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Russian stock market daily evening report (October 03, 2012, Wednesday)

Contributed by Veles Capital

Stocks

Market today. Exchange markets still are in “mild pessimism”, feeling no ideas that might have become a growth driver after the news on launch of QE3 has been totally won back. As for positive, we might outline the data on index of economic conditions ISM non-manufacturing in the U.S. which turned out to be better than expected. Participants also expect data on oil and oil products supplies – the market will be winning back that information tomorrow. Today the shares of Aeroflot were the growth leaders – quotes were climbing due to the news on the company being ready to buy back the shares from A.Lebedev. TGK-13 and IDGC Holding looked worse than the market.

Market tomorrow. Tomorrow the positive open of the data from U.S. Totally we expect preservation of the sideways motion this week.

Bonds

Market today. Overnight to output of data on U.S. labor market the trade at the domestic market went calmly. Ministry of Finance placed more than half of BFL 26207 via upper border. Despite that state loans were bought at the secondary market. The median range of the curve added up to 30 b.p. (-3-5 b.p. on yield). In the corporate segment no expressive trend developed by the end of trade. Buying went in the currency bonds. State notes added +20-45 b.p, among the corporate issues demand was for the Eurobonds of Sberbank, Vimpelcom, RSHB and VEB.

Market tomorrow. Thursday Russian bonds have a good chance to continue growth against the background of the strong ADP report output in the U.S. on the new jobs and business activity non-manufacturing index.

News briefly

USA – ADP employment indicator formed 162 th in September, 143 th was expected. (Interfax)

USA – ISM non-manufacturing in September formed 55.1, 53.2 was expected. (Interfax)

IRNC North-West reduced its plan on net profit of 2012 by 36% to 13.3 mn RUR. (Company)