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Russian stock market daily evening report (October 25, 2012, Thursday)

Contributed by Veles Capital

Stocks

Market today. Today the trade at the Russian market began with growth of the leading exchange indices and closed near the previous trade day levels. Irkutskenergo was among growth leaders due to the news on the course of the deal on purchasing 40% of Irkutskenergo (currently held by Inter RAO) to RusHydro was the main growth driver. Today came the information that in course of yesterday’s session of presidential committee on FEC the head of Inter RAO offered Rosneftegas to buyback 40% of Irkutskenergo from his company for 50 bn RUR. Than Rosneftegas should exchange given portfolio for the shares of an additional emission of RusHydro. Positive dynamics of shares of Mosenergosbit was possibly related to an attempt of the government to introduce differentiated retail adding for the largest energy distributors and bring its size to actual expenses of energy companies.

Market tomorrow We expect the sideways dynamics to preserve at the market tomorrow.

Bonds

Market today. Trade activity was not high at the Russian market today. BFL won back a share of yesterday’s drop having added 15-50 bps in price. At the long end the curve slipped 4-7 bps. Quotes of the corporate issues closed the day with minimal changes and the most significant trade volumes went on the loans FNC-22, Magnit MB-7, Akron MB-1. Russian Eurobonds did not stand the pressure of rising Basis. By the end of the day the sovereign bonds slipped 30-40 bps. In the corporate segment the loans of Sberbank and VTB managed to stay in the green zone, the others traded at Wednesday close level.

Market tomorrow. Probably current dynamics preserves at the Russian market. Domestic market might climb upside as the foreign background improves, on contrary the Eurobonds will go down preserving the former spread versus UST.

News briefly

USA: long-term use goods’ orders grew in September 9.9%, 7.1% adding was expected. (Interfax)

USA: the number of initial jobless claims formed 369 th last week, while 370 was expected. (Interfax)

Magnit build up its net profit by IAS within 9 months of 2012 by 2.4 times to 16.8 bn RUR. (Company)

RAO UES East upped power energy output within 9 months of 2012 by 7%, heat output – by 6%. (Company)