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Reports Russia

Russian stock market daily morning report (July 07, 2014, Monday)

July 7, 2014, Monday, 17:44 GMT | 13:44 EST | 22:14 IST | 00:44 SGT
Contributed by Veles Capital

We expect the Russian market to open Monday near the Friday close levels, mainly in the red zone at the back of reduction at the majority of grounds and lack of any significant events as the US grounds were on vacation. The majority of ATP indices is looking down in course of Monday trade. Exchange indices of Europe have slightly reduced. US grounds were closed Friday.

Main events

Oneksim Group, owned by Mikchael Prokhorov, started changing the structure of ownership of Quadra on the threshold of selling.

In case the shares of Quadra are consolidated on the basis of one of the offshore companies of Oneksim, the minority of the generator will receive an offer to buyback stocks in order to sell the entire 100%. However, currently, the quotes level of the power company is 24.3% above the level of the six month weighed average, which is normally used as basis when buying bask shares within the framework of similar deals. The minority is not likely to be offered a higher buyback price. Therefore, growth of Quadra’s shares might occur only in a speculative mode.

The government has cut dividends of Gazprom for 2016.

Dividends for 2016 might form 9.3 RUR per share. Switching to calculating dividends of Gazprom by IAS is delayed for uncertain term, which might pressure the quotes of the company, being related to the necessity to conduct large investments in the nearest years.