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Reports Russia

Russian stock market daily morning report (January 30, 2014, Thursday)

January 30, 2014, Thursday, 10:46 GMT | 05:46 EST | 15:16 IST | 17:46 SGT
Contributed by Veles Capital

Negative results of stock trade in Europe and US this Wednesday at the back of cutting support volume within the frames of QE program determined clearly negative expectations on the Russian market: today the shares at Moscow market will be definitely winning back the given drop. At that, reduction of MICEX and RTS indices might overweight the reduction of Japanese NIKKEI (by 2.7%)
Main events
HEPS of Siberia allow selling 50% of capacity by a market price
We assume the given news is neutral for the quotes of RusHydro. Potential upping of sales from the change forms less than 0.3% in 2013.
TMK: 5% growth of selling qoq for 4Q
The company expects preservation of demand at the Russian market for 2014. We assume that Gazprom might provide extra demand of pipes this year due to construction of the South Flow. Plans on construction of a pipeline to China likely do not affect the pipe industry in the nearest future: signing contracts with China on construction of the pipeline is expected not sooner than in summer’14, while the construction might be launched a lot later – in 2016.
According to the deputy chair of Gazprom A.Medvedev, it currently is the best time for stock buyback
Thus, given confirms the rumor on possible buyback of Gazprom’s shares, which might provide additional support to the quotes of the company. Nevertheless, we have no grounds to believe that buyback actually takes place in foreseeable future.