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Russian stock market daily evening report (September 13, 2012, Thursday)

Contributed by Veles Capital

Stocks

Market today. Today the Russian exchange market continued moving sideways waiting for the results of the FED session. Market needs a growth driver and finds them mainly in the old local ideas. Today the growth leaders once again were the shares of TGK-9, which slipped after a message on KES not joining GEH. Until any news comes out, that the assets of KES Holding will actually be sold, we recommend to refrain from investing into TGK-9. For now it is possible to take advantage of the consolidation of TGK-5, -6 and -7 basing on TGK-9. We still see potential in the shares of RAO UES East, which still look better than the market. Aside the power energy companies’ shares the shares of Polyus Gold and Surgutneftegas are climbing.

Market tomorrow. Tomorrow the market might finally get active. The trend will depend on the decision of FED.

Bonds

Market today. Investors are waiting for the decision of FED. Ruble loans moved sideways. Single deals were indicated on the issues VK-Invest-3, Magnit Mb-6, Gazprom MB-6. Not aggressive sale of the sovereign issues continued in the Eurobonds and lost by the end of the day 10-20 b.p. average. In the corporate segment single buying occurred and the prices grew within 20 b.p.

Market tomorrow. Friday the market will be winning back the results of FED session. At that the ruble segment will be under pressure of the unexpected decision of the CB to up all rates at once on all operations.

News briefly

USA – producers price index grew in August by 1.7% m/m, 1.1% m/m upping was expected. (Interfax)

USA – the number of initial jobless claims within the past week formed 382 th, 370 th was expected. (Interfax)

AFK Systema gained net loss by US GAAP in 2Q 2012 in the volume of 162 mn USD versus profit a year before. (Company)