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Russian stock market daily morning report (August 12, 2010, Thursday)

Contributed by Veles Capital

By Veles Capital

Local correction goes on at the Russian share market. Weak external background at the trades open, the oil price reduction during the day, disappointing stats on the U.S. foreign trade – all the given factors leaded to slipping of the Russian shares. Naturally all the representatives of the oil-and-gas sector were losing in price same as banks (against the background of ruble weakening versus dollar due to oil price reduction). Among the dropping market the shares of Raspadskaya are remarkable – on Wednesday chairman of the government Vladimir Putin made another sensational statement on the mine and its soon recovery, which also did reflect positively on its quotes.

Main news
 

The state will finance providing power supply to Raspadskaya.

Ministry of Finance intends to provide 1.7 bn RUR for organizing stable power supply of Raspadskaya mine. Construction of two lines of power lines 110 kW each and three sub stations was meant. We expect that participation of the government in reconstruction of mine might be a positive signal for the share market, however, we a skeptic on the possibility of fast recovery of production activity of Raspadskaya due to worsening of quality of the mined coals because of the fire-fighting operations.
 

The government is preparing raise of taxes for the oil-and-gas sector.

According to data of Interfax-AFI the export duty for oil in RF might form 274-277 USD per ton from September 1, 2010. At the same time the oil export duty, extracted from East Siberia might total 87-89 USD per ton. Currently the export duty forms 263.8 USD per ton. So, upping by 13 USD per ton is planned.