The Russian stock market ends the day up

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At the end of the day Mosberg index added 1.1% to 2317 points, and each strengthened the rouble rose 1.3% to 1113 points.
External background from foreign sites positive: the American S&P 500 has added 1,28% and the European STOXX 600 was gaining 1.47%. It became known that Italy is considering possible support of local banks, whose balance sheets have suffered greatly after the growth of yields of government bonds of the country. In addition, the positive sentiment brought the publication of a fresh portion of karpatchev. HSBC Bank (Europe’s largest) reported net profit thanks to its strategy of development and reduce costs. We continue to believe that the correction in the markets will be local in nature, so it is unlikely to fall.
Personal income in the U.S. in September increased by 0.2 m/m, expected is +0.3 mm. Personal spending 0.4% m/m, in line with expectations.
In Russia, the better the market looked papers of the electricity sector (+1.8%) and consumer sector (+1.4 per cent).
The leaders of growth there were securities of “Yandex” (+5,6%), “Ribbon” (+5.5%) and Sberbank (AP: +3.3 percent). The outsiders were Polymetal (down 2.2%), M. Video (-2%) and “PEAK” (-1,8%).
Monday on a conference call with investors, the head of “Yandex” has confirmed that he intends to leave the company or sell the shares of the company.
“Tape” has published the weak reporting. The trade area increased by 17.2% year-on-year. Revenue increased by 12.5%. LFL: the number of checks fell by 0.3%, the size of the average check decreased by 0.3%. However, simultaneously with the publication of the report was announced repurchase program receipts on the London stock exchange. The volume of repurchase will amount to 11.6 billion rubles (10% of market capitalization). The situation is similar to the recent redemption of shares of the retailer Dixy. So, earlier a subsidiary of JSC “Dixie South” was entitled to purchase on the Moscow stock exchange up to 10% of the ordinary shares at the market price. The result of the implementation of the program was the nearly 50% increase in the stock price. We recommend you to take part in speculative growth of quotations of “Tape”. As the scenario in the case of “Dixie”, the active phase of growth can last for 1-1,5 months from the beginning of the procedure of redemption.
Oil major varieties by the evening became cheaper in the range of 0.5%: a barrel of Brent cost $77,6 and WTI – $67,3. According to Baker Hughes, the number of oil rigs in the US increased by 2 units to 875. In addition, the pressure exerted dollar index growth of 0.2%.
In the foreign exchange market United States dollar the evening lost 0.2 percent to 65.6 rubles, and Euro decreased 0.4 percent to 74.7 RUB support the ruble had the demand for OFZ, index RGBI up 0.17%.
At the upcoming evening session possible moderate growth of quotations of futures on index Mosberg, and the pair dollar/ruble will stay at current values.
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Timur Nigmatullin,
Analyst
“Opening Broker”