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Russian stock market daily evening report (October 19, 2012, Friday)

Contributed by Veles Capital

Stocks

Market today. European and American share indices show reduction after the output of disappointing results of General Electric and Microsoft. At MICEX negative was also dominant: investors were interested in the notes of retail and communication sector. Shares of M.Video added in price due to news of the possible payoff of special dividends.

Market tomorrow. We estimate the foreign background as mildly negative for the Russian share market. However, we assume by Monday the mood of the investors will change for the better due to currently 61.3% of companies at the American market reported better than forecasted.

Bonds

Market today. The end of the week was calm at the Russian debt market. Long BFLs were once again purchased in the ruble loans segment. 26205, 26207, 26209 issues added 15-20 b.p. during the day. In the corporate sector interest was focused on the new issues Magnit MB-7, FNC-25, MOESK MB-1, but their quotes remained at the former level. Russian Eurobonds also did not show any remarkable dynamics. Pressure of sellers was indicated in TNK-BP only, due to the news on being sold to Rosneft. Quotes of the sovereign loans at the end of the day stood 5 to 15 b.p. higher than Thursday close level.

Market tomorrow. Early next week the Russian market will likely be consolidating due to having no fresh signals from the foreign grounds. Besides, the ruble segment will be under pressure of the tax payments’ start.

News briefly

Moscow credit bank within 9 months of 2012 upped its RAS profit by 3.6 times YoY to 4.11 bn RUR. (Company)

BoD of M.Video recommended the shareholders to approve special dividends of 30 RUR per share. (Company)

Busher nuclear power plant is scheduled to be introduced into in March of 2013. (Atomstoyexport)

MMK upped the steel output 5% to 3.36 mn tons in 3Q 2012. (Company)

Inter RAO announced the obligatory buyback of TGK-11 shares by 0.015066 RUR per share. (Company)