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Russian stock market daily evening report (September 27, 2012, Thursday)

Contributed by Veles Capital

Stocks

Market today. Expectation measures to stimulate the economy by Chinese CB, European stats, which appeared in the frames of expectations and the positive data from the U.S. – all that was the reason of the exchange indices rise. Reduction of GDP growth estimations in the U.S. was not taken negatively due to the fact that it mainly resulted from the re-estimation of crops because bad weather conditions. Also the drop of orders for long-term goods in August, which was the result of aircraft orders, was likely taken positively – not considering the aircrafts, the orders of machinery, electronics and equipment grew 1.1% - for the first time since May. The most positive issue was the weekly data on unemployment – reduction of initial and secondary claims was stronger than expected.

Market tomorrow. After trade close at the Russian grounds Spain will output the budget plan of the government which will bring clarity the way to be chosen. The state might bet on the self consistent exit from crisis via economic reforms, or ask for financial bail. At that immediate claim of the state for bail might be taken by the players more positively.

Bonds

Market today. Output of not bad data and positive expectations relating budget plan of Spain supported morning positive. Following upping at the western grounds, demand of risk grew in the Russian bonds. In the ruble loans demand was still focused on the bank sector, buying also went on bonds of MTS, Vimpelcom, MMC and FNC. Eurobonds added 20 b.p. average. Russia-42 traded at 119.54% of the nominal (+85 b.p.), Russia-22 – 111.49% of the nominal (+30 b.p.)

Market tomorrow. Foreign background remained positive, which will support the quotes of the Russian loans on the last work day. Corrections might be introduced by the output of budget plan by the Spanish government for 2013, scheduled Thursday evening.

News briefly

Russia – sales of UtAir by IAS for 1H 2012 grew by 40% to 31.25 bn RUR. Company

Russia – net profit of O2TV for 1H 2012 by RAS grew 14% to 190 th RUR. Company

Russia – net profit of Transcontainer by IAS in 1H 2012 doubbled to 2.7 bn RUR. Company

USA – estimation of GDP in 2Q 2012 was revised downwards to 1.3% (former figure 1.7%). Interfax

USA – long-term use goods orders reduced in August by 13.2%, 5% reduction was expected. Interfax

USA – the number of initial jobless claims formed 359 th last week, 375 th was expected. Interfax