We think that infrastructure and real estate stocks should have a mixed performance in May, but are unlikely to outperform the broader market. We expect that Mostotrest could have mixed performance in May due to a dividend record date and mandatory buyout offer from controlling shareholder. As far as real estate stocks concerned, we think that LSR Group could have slightly better performance compared to Etalon Group, which could decline on May 14, which is an ex-dividend date for the stock.
We expect mixed performance for transport stocks in May
We expect transport stocks to put in a mixed performance in May. Rail gondolas operators could underperform the broader market mainly due to weak industry conditions. At the same time, we anticipate that Aeroflot shares could outperform the market, as we anticipate that the airline should continue to gain market share and become the main beneficiary of the VAT reduction for domestic flights over the summer high season.
We expect stocks to underperform the broader market in May
We expect automotive stocks to underperform the broader market in May. We do not expect important corporate events in May, while market conditions remain weak, suggesting still significant sales decline over the April-May period.
According to our estimates, no automotive company will pay dividends for 2014, suggesting low investment attractiveness for these names over the dividend record dates period from late April to early July.
Although we would prefer AvtoVAZ shares to other automotive names in May due to Lada sales outperformance, we anticipate that investors demand would be low and therefore we anticipate that share price performance as well.