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Russian stock market daily evening report (October 16, 2012, Tuesday)

Contributed by Veles Capital

Stocks

Market today. Today the trade at the Russian market continued with a positive tune: the optimistic mood was supported by the positive report of the CitiGroup and macrostats on the U.S. New from Spain was the driver. Yesterday another “undisclosed source” from Madrid stated that the state is ready for the official claim to the ECB, today early European morning the WSJ informed the world about that. Against given background Spain’s index IBEX35 added 35%.

The growth leaders of the Russian market today are the shares of IRNC Center and Volga Region, due to the players expect it to become one of the “pilot” programs on privatizing the intraregional distribution network companies, which is scheduled for 2013. Also once again the shares of Magnit looked better than the market – company leads the sector. The worst drop was on the shares of IRNC Holding, which plans an additional emission in the volume of 34% by the price of 2.16 RUR per share.

Market tomorrow. Players are waiting for Thursday, when the economy summit begins in Europe, a wide range of data comes on China and will provide an idea of the Peoples Bank of China’s mood relating the easing of the credit-money policy. We expect the mildly positive dynamics to continue.

Bonds

Market today. In the BFL segment the morning buying change be noon into alarmed waiting for the features of the additional placement of 25080 and 26207 and buying resumed only after the premium on 207th issues has been announced. At that non-residents were the main buyers, while the domestic players preferred fixation. In the corporate segment no single dynamics developed. Trade on the new MB of Novatek might be called interesting. Deals went up to 100.4-100.5, which is quite a result considering recent placements. Russian Eurobonds traded not bad, but still a wave of sell off went on the market by the end of the day.

Market tomorrow. Wednesday nothing changes much. Ruble getting stronger makes the non-residents buy ruble notes, while the Russian Eurobonds in the moment a less attractive. The general feeling of overheating of the domestic state notes market makes the domestic participant not buy. Notes of Akron reaching out for the secondary market seems to be interesting.

News briefly

Germany – ZEW index formed -11.5 points in October, 15.0 was expected. (Interfax)

USA – consumer price index considering the seasonal factor grew in September by 0.6% m/m, growth by 0.5 m/m was expected. (Interfax)

USA – industrial production in September grew 0.4%, upping by 0.2% was expected. (Interfax)