Page 2 - bne_newspaper_January_11_2019

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June 14, 2019 www.intellinews.com I Page 2
Ukraine launches roadshow for euro- denominated Eurobond twelve-month high (yielding slightly below 8.0%).
Euro-denominated bonds trade at a negative spread of 150-200 bps to US dollar bonds, so there is a solid chance for Ukraine to place the new issue at about 7% or below, he added in
a note on June 10. "If it's successful, this placement could be supportive for Ukraine’s dollar yield curve, as well as for the country’s fiscal sustainability for the rest of 2019," he wrote.
As bne IntelliNews reported earlier the ministry is planning to issue a total of $4.2bn on the international markets as part of its debt management plan. Ukraine has a total of $16.1bn of debt to repay or refinance this year.
Russia's TCS Group suspends 2019 dividends merger with Russian internet major Yandex.
"Suspension of 2019 dividend payment is posi- tive as it removes some corporate governance issues, raised by us and investors," BCS Global Markets commented on June 11.
TCS dividend policy sets the payment at 30% of net profit under IFRS. Suspended dividend payment accounts for RUB8.5bn on BCS GM estimates, which is roughly half of $300mn potential SPO placement.
The analysts maintain the Buy recommendation for TCS with a target price of $29 per share. The group trades on 3.1x P/BV (price to book value), which is the level of 2017, for ROE (return on equity) of 60% pre-placement.
Russian Market Data Value
1M YTD
Equity Indices
RTSI
1,347
12%
26.0
MOEX
2,758
10%
16.3
MSCI EM
1,022
1%
6.0%
S&P
2,892
3%
16.0%
NASDAQ
7,837
2%
19.0%
DAX
12,169
2%
15.0%
FTSE
7,369
3%
9.0%
Commodities
Price, $
1M YTD
Brent
61.4
-12%
13%
WTI
52.3
-14%
15%
Urals
74.2
-4%
65%
Gold
1,342
3%
5%
Silver
14.9
1%
-4%
Nickel
11,920
2%
12%
Copper
5,798
-4%
-3%
Aluminum
1,756
0%
-6%
FOREX
Value
Russia sectors performance % YTD
1M YTD
EUR/RUB
72.78
-1%
-8%
Russia sectors performance % YTD
Oil & Gas Utilities Financials Consumers Telecoms
M&M RTS MOEX
31 25
26.0 16.3
17
21
13
0 10 20 30 40
21
Source: MOEX, BCS GM
source: MOEX, BCS GM
Sectors: % return YTD