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Reports Russia

Russian stock market daily morning report (August 01, 2014, Friday)

August 1, 2014, Friday, 10:31 GMT | 05:31 EST | 15:01 IST | 17:31 SGT
Contributed by Veles Capital

Positive data on Chinese PMI in manufacturing industry that have been showing maximum growth rates within the recent 2 years, did not support the markets – the Asian grounds are looking down following S&P 500 that was 2% down. The Russian market will also be under pressure in the morning. A number of important stats is expected on the US labor market- we expect detailed data on the number of jobs outside the agricultural industry and unemployment level. Improvement of the situation at the labor market might serve as a reason of selloff due to risk of Fed switching to tightening its monetary policy soon.

Main events

SPO of Bashneft is delayed for an uncertain term.

BoD of Bashneft has recommended the stockholders meeting, which is to be held on October 15, to delay the SPO due to unfavorable market conjuncture.

Production results of Norilsk Nickel.

Nickel output for 2Q 2014 reduced 10.2% qoq. At that, copper output grew 3.7% qoq, palladium – 19.5% qoq, platinum – 18% qoq. Generally, the dynamics of output is within the frames of the projections by the company’s management. We assume that high dividends form the key factor of interest in the shares of the company. According to our estimation, dividend yield of for 2014 might form 8% in dollar terms, which is nearly in line with the yield for 2013 – 8.1%.

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