Drukāt |

Norvik Research 10.04.2017

10/04/2017 17:16

Global developments

Global stocks are mixed. Nikkei 225 is up 0.7%, CSI 300 is down 0.4%. S&P futures are 0.1% lower, while Eurostoxx 600 is marginally lower. The dollar index is up 0.1%, US 10Y Treasury yields are 1 bp lower at 2.37%.

Oil prices are rising despite increased drilling activity. Baker Hughes rotary rigs number increased by 10 to 672. Brent prices are up 1.0% today at $55.8/bbl gaining 5.4% from the start of the previous week.

Russia and CIS area developments and market colour

Secretary of State Rex W. Tillerson is visiting Moscow on 11-12 April. This visit is very important for US-Russia relations after US bombed the Syrian military base. Mr. Tillerson was holding a hard line against Russia criticizing the Russian politics in Syria and accusing Russia of trying to influence elections in Europe.

Ukraine’s central bank governor Gontareva resigned from May 10 at own will. Gontareva took office about 3 years ago and her tough anti-crisis measures were favoured by the IMF but opposed by local businessmen and lawmakers. Gontareva stressed the importance of NBU’s independence and cooperation with IMF but warned that resistance to changes and reforms would grow stronger.

Corporate news

Last week, AFK Sistema published its operational and financial results for 2016, which can be assessed as moderately positive. In 2016, sales reached 697.7 billion roubles, a 2.8% increase compared to 2015. Adjusted OIBDA also went up (+5.7% YoY) reaching 183.7 billion roubles with OIBDA margin at 26.3%. The group’s adjusted net income amounted to 1.7 billion roubles compared to losses in 2015.

Net debt/OIBDA metric at the end of 2016 stood at 2.2x, which is slightly higher than during the previous quarter (2.1x). Corporate center’s net debt stood at 83.5 billion roubles, which is 3.6% higher than in 3Q 2016, while net debt to consolidated OIBDA remained unchanged at 0.4x.

AFK Sistema’s Eurobond maturing in May 2019 and a coupon of 6.95% is currently trading with YTM at 3.2%. Spread to government bonds stands at 165 bps. It is also worth noting that on March 31, the company has issued 5-year rouble-denominated bonds with a coupon rate of 8.9%.

For more information on the research, please click here.

Norvik Banka Research
+44 207 259 8854

Brokerage department
+371 6701 1561

This report is prepared by Norvik Banka UK Limited, of 46-48 Grosvenor Gardens, London, SW1W 0EB, United Kingdom (hereinafter referred to as the Company) as a marketing communication for information purposes only. Neither the information nor any opinion contained in this report (notwithstanding the source) is intended to be, or should be construed as an offer, a recommendation, an advice or an invitation to make an offer, to buy or sell any financial instrument. Information contained in this report constitutes neither investment nor tax advice and it does not take into account the specific investment objectives, risk appetite and financial situation of anyone who may receive this report. Investors should seek their own advice regarding the appropriateness of investing in any financial instrument discussed in this report and carefully evaluate the risks and eventual losses that are related to the investment services and its compliance with their investment goals.
Investors should note that any income derived from investments in financial instruments may fluctuate and that the price or value of securities and investments may rise or fall. Accordingly, investors may lose their investment or receive back less than originally invested. Past performance and income is not a guide to future performance and income. Foreign currency exchange rates may adversely affect the value, price or income of any security or related investment mentioned in this report. Investing in the Russian or CIS economies and securities involves a high degree of risk and requires appropriate knowledge and experience.
The information contained in this report have been obtained from such public sources what are believed to be reliable, but no representation or warranty is made by the Company with regard to accuracy. Therefore the information contained herein is subject to change without prior notice.
This report should not be viewed as the only source of information, and neither the Company, nor the companies within the NORVIK group and/or any affiliates or employees thereof accept any responsibility or liability whatsoever for any direct or indirect damage arising out of or in any way connected with the use of information contained herein, nor for its authenticity.
This report may not be distributed, copied, reproduced or changed without prior written consent from the Company. Further information, which for the avoidance of doubt cannot be treated as the recommendations and/or advice either, may be obtained from the Company upon request.
This report has not been prepared on the basis of the requirements of regulatory provisions promoting independence of investment research and is not subject to the prohibition from making transactions before disseminating investment research.
Norvik Banka Research is a Trading Name of Norvik Banka UK Ltd, which is Authorised and Regulated by the Financial Conduct Authority, FRN: 681329. Registered in England and Wales with number 08940522. Registered Office: 46/48 Grosvenor Gardens 1st Floor, London, SW1W 0EB.

The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation of the contents of this information is strictly prohibited and may be unlawful.

This email has been scanned for viruses and malware, and may have been automatically archived by Mimecast Ltd, an innovator in Software as a Service (SaaS) for business. Providing a safer and more useful place for your human generated data. Specializing in; Security, archiving and compliance. To find out more Click Here.

Pēdējās ziņas