The stock market for the week: “PEAK” at the peak, and “Gazprom” at the peak
Last week from 8 to 15 November in the Russian stock market on change growth come the fall. For the week the index Mosberg and the RTS index fell by 1.3% each to 2934,82 of the item and 1449,42 points respectively.
But the price of oil North sea Brent last week continued to rise and ended the week up 0.9%, rising to $62,73 per barrel. World stock markets were thrown from one extreme to another in the background coming for the last week of contradictory statements about what will be or will once again postponed a trade deal the U.S. and China. By the end of the week after the optimistic statements of the US Department of Commerce optimism in global stock markets prevailed. However, in Russia the shares of the oil and gas sector last week was not among the leaders, rather the opposite.
In a falling market was doing well, the action developers and construction companies, in particular, the leaders of growth were shares of construction group “PEAK”. Stocks for the week rose by 6.2% to RUB 364,5 the reasons for the growth are not yet clear, perhaps the only one of them was that a week earlier, shares of the group companies has fallen dramatically against the market and last week looked undervalued. While the financial results of the company for the nine months, the company look very weak: revenues in the first nine months fell at an annual rate of 9%, to 15.6 billion roubles, and net profit in annual terms fell four times, to 295,9 billion.
It may be noted that last week against the market has increased quite a bit the shares of construction group LSR by 2.9% to RUB 770,2, on expectations of high dividends. To date, the shares of PIK are close to our target price of 370 RUB. We recommend “hold” papers.
But the “blue chips” last week was not the best hand, and the outsider of the market were the shares of “Gazprom”, decliners for the week by 6.8% to RUB 248,01 per share. News background last week contributed to the landslide: this is a notification sent by the Russian Corporation of its Polish partner about the fact that Poland at the expiration of a contract on gas supplies intends to refuse its renewal; and the news that “Gazprom” refused placement of Eurobonds denominated in Swiss francs because of the threats of Ukraine to take away the raised funds to repay the debt to the Ukrainian “Naftogaz”.
While Gazprom has not followed any clarification on the question about prolongation of the contract with Poland, nor the plans for future placements or refusal of placing of Eurobonds. We consider that falling of actions “Gazprom” as an opportunity to buy cheap shares. Our target price the shares of “Gazprom” is 280 rubles, recommend buying paper with a horizon of one year.
This week, we expect the dynamics of the RTS index in the range of 1440-1480 points, and the index Masuri in 2920-2970 points.
Deputy head of the “Information-analytical center,