New York: 21:14 || London: 02:14 || Mumbai: 05:44 || Singapore: 08:14

Reports Russia

Russian stock market daily morning report (July 04, 2014, Friday)

July 4, 2014, Friday, 09:56 GMT | 04:56 EST | 13:26 IST | 15:56 SGT
Contributed by Veles Capital


Numbers posted in the evening on the number of jobs in non-agricultural segment confirmed growth in the US showed priory by the numbers posted by ADP. Unemployment for June reduced in US to 6.1%, which indicated raise of probability of a relatively soon switch to rates upping by Fed. Nevertheless, the American market continued upping on the threshold of the holiday. The US will not be trading tomorrow due to celebration of the Labor Day, thus the Russian market will be driven by the events in Ukraine.


Main events

Uralkaliy upped production by 33.3% for 1H 2014.

Uralkaliy upped production by 33.3% for 1H 2014 to 6 mn tons from 4.5 mn tons for the similar period of the previous year. Note that for June, Uralkaliy has cut its plans on production for the current year from 12-12.5 mn tons to 11 mn tons – meaning that for 2H 2014 we might see significant reduction of the output volume vs the volume for 1H 2014. Reduction of planned volumes reflects effort of the company to control the prices. The major driver of the quotes of the company might in prospect be the recovery of potassium cartel with Byeloruskaliy.
 
Bashneft is preparing to SPO.

On August 14, Bashneft will conduct another shareholders meeting. Stockholders of Bashneft will consider the deal on under-righting with Morgan Stanley, Barclays and Sberbank CIB – within the frames of the possible SPO. It has also been announced that the BoD has already approved the deposit agreement with Citibank within the frames of SPO. Bashneft might build up its authorized capital stock by placing 37 mn common shares via public subscription, which forms about 20.5% of the authorized capital stock and over 24.6% of the common shares.