The market ended down 0.5% on lower than average volume again on Tuesday. The announced OPEC output reductions had little impact on the oils which ended mixed, except for Sibneft which was up 3.7% on continued steady buying and its limited free float. Domestic stories like Gazprom, Sberbank and Transneft were all stable or firmer while the cellular companies corrected down after a good run on Monday.
Russian sovereign eurobonds lost 0.20-0.25% yesterday in line with US Treasuries, while their spreads tightened by 3-5 bp. However, most corporate external issues continued to increase. The EMBI+ Russia Index fell 0.28% with the spread flat at 256. Both GKO-OFZ and corporate domestic bonds were marginally lower yesterday.
