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Russian stock market daily morning report (February 04, 2013, Monday)

Contributed by Veles Capital

This week the result of ECB session will be the most remarkable factor for the markets – in case the European bank does not justify hopes of the investors for any kind of stimulation measures that might trigger correction due to current conditions of markets being overbought.

Main events

Norilsk Nickel might pay 3.9 bn RUR as penalty charge.

We assume the given event is neutral for the company – volume of the possible penalty charge does not exceed 5% of the company’s expected profit for 2012 and we are skeptical about the possibility of Norilsk Nickel paying the given penalty.

Considering corrections we introduced to the model of Enel OGK-5, we change our recommendation to “BUY” with 48.03% growth potential. Fundamental cost of shares forms 0.0827 USD.

We forecast possible improvement of the financial estimates within the reported year against background of increase of power energy output by 5.12%, according to operation data output by Enel OGK-5.

Net profit of Rosneft by IAS in 2012 grew 7.2% last year.

According to our forecast, net profit of Rosneft after consolidating TNK-BP reaches 17.1 bn USD FY 2013.