Page 115 - RusRPTOct22

Temirtau increased uncoated flat steel exports by 4% m/m to Russia – neutral as the steelmaker’s share is just c2% of Russian apparent flat steel consumption (ex-coated). Finally, the commodity prices were mixed yesterday: silver and aluminium declined more than 1% on the day, while most other metals were unchanged.
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The boards of OGK-2, Mosenergo and TGK-1 generation companies have approved new dividend policies, distributing annual dividends amounting to at least 50% of their net income. All three utility companies are subsidiaries of GEH (GazpromEnergoHolding) utility major, which is affiliated to Gazprom, the gas giant.
Phosagro’s EGM approved Rb780/share (Rb101bn) in 4Q21 and 1H22 dividends. The record date is October 3. Analysis: Dividend decision is an expected and a positive development. Dividend recommendation is a good development. Phosagro enjoys healthy export prices (even adjusted for strong ruble). This enabled it to pay a sizable amount. We remind that dividends (for 4Q21 and 1H22) came on the back of strong results, as fertilizer prices moved up quite dramatically. Mid-term dividend outlook will be affected by export duty decisions, export fertiliser prices. Stability of export revenues will be critical for sustainability of dividends at current levels.
8.3.3 ECM news
The secondary public offering (SPO) of Russian cyber and information security solutions developer Positive Technologies failed to attract sufficient demand from investors, raising only RUB1bn out of targeted RUB3bn, Vedomosti daily reported citing the issuer. As followed by bne IntelliNews, the SPO was in focus as the first offering on the Russian equity market isolated by the fallout from the military invasion of Ukraine. The first post-invasion IPO announcements came from local software developers, as office software and cybersecurity technologies are the segments that could effectively import substitute the outflow of foreign suppliers.
Hedge funds active in Eastern Europe are being slammed by soaring inflation, the rise in the dollar and the war in Ukraine, shows the BarclayHedge Eastern European index, which tracks the performance of hedge funds trading stocks and bonds in the region, Reuters reported. Hedge funds are suffering their worst performance in eight years, the index shows, with a fall of 22.65% from the start of 2022 to the end of August. Another BarclayHedge index, which follows fund managers trading only stocks in Eastern Europe, is down by almost 32% over the same period. An MSCI EM Eastern Europe ex-Russia index that trades in euros is down just over 30% year-to-date, underperforming wider emerging market equities. By comparison, the MSCI International EM Price Index is down 22%.
115 RUSSIA Country Report October 2022 www.intellinews.com