Reports » Russia

Russian stock market daily morning report (February 21, 2013, Thursday)

Contributed by Veles Capital

Foreign background is negative for the trade open of the Russian market. Initially we should be expecting the quotes reduction in the energy sector.

Main events

Eni once again intends to revise its contract with Gazprom.

Possibility of contracts’ revision will continue to pressure the quotes of Gazprom’s shares.

Norilskii Nikel will issue bonds for 35 bn RUR

Start of attracting financial assets via issue of bonds will make the participants of the stock exchange confident that possible needs of capital costs would be provided with no threat of dividends cut. We estimate the given placement positively for the quotes of Norilsk Nickel.

Upping of investment program of FGC UES for 2013-2017 is not to happen.

Average depreciation within the industry forms about 70%, and the efficient investment program requires twice more assets. However, in order to hold back the tariffs, the approved size of the program will not be increased.

Severstal will cut its capital expenses in 2013 by 400 mn USD to 1.3 bn USD.

Reduction of expenses allows the company to gain positive cash flow by the end of 2013 in the volume not less than 150 mn USD, which should become a positive signal for the investors. We estimate the given message is positive for the value of company.