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Russian stock market daily morning report (October 10, 2012, Wednesday)

Contributed by Veles Capital

We expect the Russian market to open negatively today. Nevertheless, under conditions of the positive background remaining on behalf of the U.S. before the election and European leaders fearing to make any hard moves until November, we are mildly optimistic on the prospects of the market this week.

Main events

For the first time Rusal prevailed in an action against Norilsk Nickel in court.

Arbitrage court of Krasnoyarsk Territory satisfied claims of RUSAL on voidance of the decisions of the BoD of Norilsk Nickel as of September 13 and 21, 2011, which adopted the buyback for sum 7.7% shares of Norilsk Nickel to its foreign subsidiary Norilsk Nickel Investments Ltd.

According the position of RUSAL and the court, BoD of Norilsk Nickel had no right to approve the terms of shares buyback due to that was contradictory to the regulation on the foreign investments into strategic enterprises. Federal Antimonopoly Service made the management pay attention, however, the warning of FAS has been ignored and buyback completed. Norilsk Nickel has already announced that it would interpose an appeal to court.