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Russian stock market daily morning report (August 14, 2014, Thursday)

August 14, 2014, Thursday, 11:35 GMT | 06:35 EST | 15:05 IST | 17:35 SGT
Contributed by SVS Securities

Slightly underperforming numbers on the retail selling in the US for July, posted yesterday evening, had just supported growth of the American market - deceleration of the growth rates of retail selling in July down to zero is favorable to preservation of the easy monetary policy of Fed. Trades close in the US in the green territory will benefit to open of the Russian market in the green tomorrow. We expect the bounce of the oil quotes that started today to continue tomorrow, which is to provide support to the Russian market. Slight negative at daytime might be introduced by of GDP release in Germany and EU for 2Q 2014. Additionally, the investors at the Russian market will be following the statement of the president of RF Vladimir Putin in Crimea to the Russian political elite – 140 officials of the State Duma and the members of the Federation Council.


Main events

Construction project of a high-speed railway Moscow – Kazan is delayed.

Construction project of a high-speed railway Moscow – Kazan, which might have made great impact on the financial position of Mechel, will not be conducted in the nearest future. According to preliminary estimations, the cost of the railroad should have formed 1.06 trillion RUR and a share of given assets should have been collected by Mechel, which finalized the many year project of construction of rail-and-structural steel mill.

Akron will post 2Q 2014 IAS financial results.

We expect profit growth for 2Q 2014 by 56.46% vs 2Q 2013 to 4.5 bn RUR. Sales grows 3.69% to 18.34 bn RUR, EBITDA reduced 2.59% to 4.244 bn RUR. Net profit for 1H 2014 grows 13.45% vs the similar period of the previous year to 5.94 bn RUR.