Reports » Russia

Russian stock market daily morning report (February 25, 2010, Thursday)

Contributed by Veles Capital

By Veles Capital

On Wednesday, after a long holiday, the Russian share market opened with reduction of the principle highly liquid notes and indices, against the background of worsening expectations on the South European states and the drop of the index of consumer trust to U.S. economy to minimum within 10 months. At the same time the oil prices that remained high did not allow the indices drop deep and increasing dynamics was indicated up till the output of stats on newly-built houses sale in the U.S. However after the given stats has been output having turned out to be worse than expected, the Russian and foreign indices, rushed to their daytime minimums. We might outline the bank sector among the interesting motions due to it having displayed the worst dynamics on Wednesday due to the impact of sale in the financial sector of the U.S., and also the shares of Norilsk Nickel, which slipped significantly after Putin criticizing going out of the time limit of executing the investment program controlled by WGC-3, and also the shares of the companies-producers of potassium chloride.
 
 

Main news
 

In 2009 RusAl reduced output of aluminum 11%, in 2010 company expects growth by 3%.
UC RusAl reduced output of aluminum by 11% in 2009, alumina – 36%, bauxite – by 41%. In 2010 the company expects recovery of the market and upping of aluminum and alumina output. In 2009 volume of aluminum output formed 3.946 mn tons.
 

Other news
 

- Bashneft officially provided the features of the offer to minorities of BashFEC.

Bashneft might spend more than 11 bn RUR for buyback of shares from the minority of five enterprises of BashFEC. The offer on shares buyback has been directed to minority shareholders on February 24, the time for decision–making – 80 days.
 

- Indian factor in the shares of Uralkaliy and Silvinit.

In 2010 India might try to reach reduction of the contract price of the imported potassium chloride to 350 USD per ton, which will be the lowest level within the recent 4 years for the given region.
 

- Putin signed enactment, defining the work techniques of power capacity market.

On Wednesday Vladimir Putin announced having signed an enactment, which defines the work techniques of long-term power market. At that Putin outlined that the matter of admittance to the advantages of the long-term capacity market in the power energy market will be rigidly linked to the execution of the investment programs within power energy.