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Russian stock market daily evening report (October 05, 2012, Friday)

Contributed by Veles Capital

Stocks

Market today. Today the Russian market showed rapid upping, winning back the reaction of the global markets to yesterday’s statement of Mario Draghi. Protocols of the session on the open markets committee of U.S. FED that came out at night, confirmed readiness to raise the volume of the buyback program of assets by FED if necessary – that has also supported the mood improvement at the markets.

Shares of SOLLERS (quotes correlated to the quotes of AVTOVAZ, which output a positive 1H 2012 IAS report), Inter RAO (activity on bonds occurred due to the output financial report, despite it being relatively weak) were better than the market. The shares of Raspadskaya and TGK-14 looked worse than the market.

Market tomorrow. Unemployment data on the U.S. that came out yesterday inspired the players. Ministers of EU will meet Monday through Tuesday. As for macrostats we should indicate the following issues: Beige Book on Wednesday, Producers prices index in U.S., Producers Confidence index by Michigan University, industrial production in the EU – on Friday. Friday will also bring the reports of expressive representatives of the bank sector of the U.S. – JP Morgan and Wells Fargo. We expect the positive dynamics to continue at the markets next week.

Bonds

Market today. Buying continued at the domestic market under influence of the positive foreign background. BFLs added 30-40 b.p. each on prices, yield reduced 5 to 8 b.p. In the corporate segment buying was remarkable at the loans of TCS Bank MB-1, RSHB-14, -15. During the day Eurobonds traded sideways under pressure of the climbing UST curve. Buying indicated just at the short end of the sovereign curve (to +20 b.p.) and issues Vimpelcom-21, -22, RSHB-16.

Market tomorrow. Output of unexpectedly strong stats on employment in the U.S. became a new driver for the global markets. Against given background we expect the ruble loans to continue climbing early next week. Eurobonds will once again be under pressure of the climbing Basis, so unlikely they show expressive dynamics.

News briefly

USA – employment in non-agricultural industry grew in September by 114 th, upping to 113 th was expected. (Interfax)

USA – unemployment level in September formed 7.8%, 8.2% was expected. (Interfax)