Oct
3
Daily Russian Stocks results - October 3, 2008
Filed Under Trader’s view |
Russian Stock Market today. The market closed at yet another drop, whilst backed by low turnover. The primary fall factor was the crumbling oil price and negative forecasts on introduction of world economy. Some of utilities and banking industry securities have ignored the market, taking it upwards, such as Sberbank and WGC-5. The US employment statistics also proved quite bad.
Market tomorrow. Soon we expect the market to stabilize, as the fall goes on under extremely low turnovers.
Russian Bonds
Market yesterday. The REPO rates held at 9-18% (still remaining a non-market tool essentially, due to a limited number of banks offering money today. Some light demand also hit in short securities off 1st and 2nd tiers, mostly around those featured in the Lombard list though. Demand also appeared throughout whole Telecoms sector. Some bids occurred in short bank Lombard-list securities, and not in just state-run companies exclusively, but also within the banks with private capital (Russian Standard 7). In addition some non-aggressive bids in Itera and Stroitransgas have also come up. The spreads however are still wide: at average of 5-7%. Whereas the bids are also low, this is related to uncertainties of external background, and RF government’s actions. The deals roam when seller has to get some cash liquidity.
Market tomorrow. Under such a market – one must put a non-aggressive interest to 1st and 2nd tier bonds, under 1.5 year duration, Lombard-listed and sporting over 20% yield. This guarantees the positive carry.
Russian Stocks with No comments
According to IAS 1H 2008 financial report, Norilsk Nickel’s income decreased by 33.2% and formed 2.682 bn USD (Interfax)
Uralsvyzinvest’s net income increased by 27.2% and totaled 1.7 bn RUR under IAS 1H 2008 report (Interfax)
Novosibirsk Integrated Tin Works admitted technical default, after failing to conduct redemption of 2nd issue bonds worth 347 mn RUR (Interfax)
“Russian machines” headed by Deripaska sold encumbered shares of Magna International. (Interfax)
UBS reduces a number of investment bank’s employees by 2 th (Interfax)
Daily Russian Stock results - October 3, 2008 (PDF)