Daily analyst comments
The European Central Bank believes that keeping its benchmark interest rates unchanged at 1% could help it foster economic growth in the mid-term without the threat of rising inflation. We also note the ECB’s readiness to absorb excess liquidity as the economic climate improves, with the aim of lowering inflationary pressure in the future.
The FY 2008 report from AvtoVAZ has turned out to be expectedly downbeat: steel prices soared in 1H 2008, while sales plunged in October-December. The car maker’s margins also fell due to a surge in administrative expenses. In our opinion, AvtoVAZ will close FY 2009 in the red, due to poor sales and high raw materials costs.
AvtoVAZ
The 1Q 2009 report from Pharmacy Chain 36.6 shows improvements in the company’s retail operations, which resulted in a reduced loss and a positive EBITDA at the end of the reporting period. We do not rule out some speculation-driven growth in demand for Pharmacy Chain 36.6 shares; however, in line with our estimates, the company’s stock is currently valued close to its fair value.
Pharmacy Chain 36,6