The equity market was quiet yesterday with volumes reduced because of the US holidays. However it closed at its highs (-0.1%) after opening lower. Today, however, volumes are also likely to be light although the tone remains firm with western buying seen yesterday. None of the major stocks moved very much yesterday, although Aeroflot was up on plans to raise passenger numbers. Yukos? EGM today should be routine with the agenda well-known and uncontroversial.
News flow remains relatively positive and it is this coupled with the abundant domestic liquidity which leaves us confident of the upside in the market.
Russian external debt was flat yesterday due to the Thanksgiving holiday in the US.
Meanwhile, Vneshtorgbank has decided to scale down the size of its proposed Eurobond to $300mn. Pricing has been postponed until Monday.
The GKO-OFZ market was mostly flat while corporate rouble bonds posted fresh gains. Investor optimism had much to do with the strong rouble, the new increase in the CBR reserves and the improved money market conditions. Although the money market remained tense it was significantly more favourable than usual during the last week of the month.
