Reports » Russia

Russian stock market daily evening report (September 05, 2012, Wednesday)

Contributed by Veles Capital

Stocks

Market today. Dynamics of trade at the European share markets showed mixed dynamics. British FTSE 100 was reducing, while the indices of continental Europe (DAX, AEX, etc.) were climbing upwards. Market participants are cautiously waiting for the results of ECB session, which will be held on Thursday September 6 – investors expect the plan of buyback of the sovereign bonds of EU members to be discussed.

Sellers dominated the Russian market today – extra negative came from the reduction of futures for the Brent oil by 0.77% to 113.3 USD per barrel. Investors were cutting their positions on the notes of the majority of sectors. The drop leaders were the shares of the oil-and-gas and metallurgy sectors, however, the most reduction went on the shares of IRNC Holding, TGK-7 and M.Video.

Market tomorrow. We expect passive trade at MICEX until the results of ECB session are announced.

Bonds

Market today. Dynamics of the Russian bonds Wednesday was mixed. Ruble loans varied around the former levels, and the demand at the secondary market was focused in the loans with short-term duration. Along with that the Ministry of Finance managed to place BFL of 26209 series in almost a full volume, despite absence of premium and a long duration of the loan. Inactive buying of sovereign notes went in Eurobonds, along with loans of TNK-BP and Vimpelcom. Quotes of issues of Gazprom have on contrary reduced by the end of the day.

Market tomorrow. Thursday all investors will be focused on Europe. ECB is expected to announce unlimited program of buying state bonds, which will support growth of the risky assets

News briefly

IRNC South and Volga lowered their net profit by IAS in 1H 2012 by 13.2 times y/y to 216.854 mn RUR. (Company)

Net profit of Novorossiysky sea port by IAS in 1H 2012 lowered 36.6% to 141 mn USD. (Company)

Net profit of Aeroflot by IAS reduced 53 times y/y in 1H 2012 to 7.1 mn USD. (Company)