Daily Market Monitor: We believe the market still has growth potential, the unstable environment, especially in the FX market, limits investors’ will to purchase Rouble papers at the present time

Neither the strengthening domestic currency, nor ample
Rouble liquidity, was enough to ensure purchases on the
Rouble bond market Thursday, leaving the market flat on the
day. Larger players continue to sit with their portfolios loaded,
while smaller ones search for profit-taking opportunities,
without influencing the market significantly. Although we
believe the market still has growth potential, the unstable
environment, especially in the FX market, limits investors’ will
to purchase Rouble papers at the present time.

The Russian Eurobond market was relatively stable on the day
due to the Thanksgiving holiday in the United States. However
the situation on global FX market – where the greenback is
loosing its positions – could have an adverse impact on Dollar-
denominated assets. We believe the market could experience a
downward correction on Friday, while in the mid-term, as the
risk of downward pressure from benchmarks increase, the
prospects do not look as promising. At the same time, in the
term of the spread, Russian papers remain relatively firm.