Reports » Russia

Russian stock market daily morning report (March 19, 2013, Tuesday)

Contributed by Veles Capital

The Russian exchange market opens likely with yesterday’s drop but no that hard though. Results of the voting by the Cypress parliament on introduction of a bank savings tax will set the course of trade at the Russian and European trade grounds.


Main events

In February the industrial production volumes dropped 2.1% in Russia yoy.

We have already indicated signs of situation worsening in the industry: steel logistics via rail reduced in Russia within January-February by 5% versus January-February 2012. We advise the investors to refrain from buying the shares of the ferrous metallurgy companies.

The BoD of Nizhnekamskneftehim recommended dividends at 2.78 RUR per share.

Dividends volume fit the market expectations. Conservative scenario provides for a possible decrease of the net profit by RAS in 2013 by 10%, dividends might form about 2.5 RUR per common and preferred share, dividend yields is 9% and 10.2% respectively.

Growth potential of the share rate of TGK-1 exceeds 14% after the optimistic operation and financial result the company shared.

Consolidated sales of TGK-1 for 2012 grew 3.7%, operation profit in 2012 grew 40.5% to 9,859 mn RUR, profit of company reached 6,242 mn RUR, above 2011 estimate by 60%.