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Reports Russia

Russian stock market daily morning report (September 05, 2014, Friday)

September 5, 2014, Friday, 07:30 GMT | 02:30 EST | 11:00 IST | 13:30 SGT
Contributed by Veles Capital

We assume that until the results of negotiations in Minsk had been announced, the Russian market would be showing sideways dynamics, but underperforming Thursday within the frames of 0.5% at MICEX.

Main events

Power energy export to far abroad has dropped 30% for 7 months.

Export drop is indicated in two directions – Finland and Lithuania at the expense of unfavorable for export price conjuncture at Nord Pool market. We assume that export drop might mainly reflect on the activity of Inter RAO (the monopoly in export/import of power energy in RF) and TGK-1, the significant share of power energy is directed to export.

New sanctions might be adopted today involving all the Russian state oil companies.

The decision on the news sanctions might be made Friday or until the end of the week. There already are valid sanctions against Rosneft that limit the opportunities of attracting debt funding in Europe and the US. Thus, adoption of the new sanctions would initially reflect on the quotes of Transneft and Gazpromneft – after the sanctions are announced, quotes of given names might show a short-term dip.