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Reports Russia

Russian stock market daily morning report (August 26, 2014, Tuesday)

August 26, 2014, Tuesday, 18:53 GMT | 13:53 EST | 23:23 IST | 01:53 SGT
Contributed by Veles Capital


Within the recent days the market participants are waiting for the presidents of Russia and Ukraine to meet, which should take place today. Since the “Russia’s response” has been announced, positive sentiment dominated Moscow market at the back of the easing of the news feed from Ukraine and the matters of sanctions against Russia left the headlines. Only the arguing on delivery of the Russian humanitarian help for Lugansk and Donetsk has enforced volatility of stocks late last week.

We expect significant growth of the Russian indices this week in case of the market reaching even insignificant agreements and more to that, the most growth would be indicated in the sectors that suffered the most (banks, oil-and-gas, and consumers sector).

The foreign background is mildly positive for Moscow market: European and American markets closed in the green zone. Prices of Brent oil have indicated mild growth.


Main events

Free prices for power energy continue upping in the II zone.

Uncontrolled prices at the power energy market in II price zone are still showing upside dynamics. Positive dynamics of prices and the change of structure of the generation in the favor of the thermal stations will be positive for all the large generations, which obtain assets in the second price zone: E.ON Russia, OGK-2, Inter RAO, even despite the fact that the third quarter is the weakest from operation results view point.