OREANDA-NEWS. On 06 June 2008 was announced, that in May 2008 the Russian stock market experienced an upturn in prices for the majority of its liquid securities. The RTS Index (RTSI) climbed to 2,459.88 points (plus 15.90 %) in May, from 2,122.50 points on 30 April. At the end of the month RTSI was 38.17 % higher compared to one year ago (1,780.33 points on 31 May, 2007). In May, 38 out of RTSI’s total 48 constituents had positive impact on the Index (plus 341.5 points overall), 9 securities behaved negatively (minus 4.1 points overall). The price for 1 security remained unchanged. Most of the positive impact on the Index was coming from the price increase for common shares of JSC Lukoil (plus 94.7 points), JSC Gazprom (plus 49.0 points) and JSC Rosneft (plus 44.1 points). Negative impact of stocks on the RTS Index was insignificant. More than 55% of the RTSI total capitalization is concentrated in the oil and gas sector. The other major contributors at the end of May were banking sector – (17.1 %) and metallurgy (14.7). After the exclusion of shares of JSC RAO EEC, the weight of power industry in RTS Index lost 2.0%. On the sector level, oil and gas influenced the RTSI most positively (plus 251.1 points).

RTSI Futures Contract

The May trading in RTSI derivatives amounted to RUR 985.2 billion (approximately, USD 41.58 billion), or 8.8 mln contracts. Futures based on RTSI remain the most liquid contract on the Russian stock market making up more than 64.4 % of the total FORTS (Futures and Options of the RTSI) turnover in money terms.

In May, RTSI gained 15.90%, with the June index contracts (RTS-6.08) gaining 16.13 %, and September index contracts (RTS-9.08) - 16.15 %. The RTS Index demonstrated rapid growth rate in the first half of May and June contracts went out of backwardation during this period, however, they sank slightly after some interruption of basic asset growth. By the end of the month June contracts ended with a benefit. September contracts went on trading in contango. The investors’ open interest in May was attracted to June contracts. Total open positions in the index futures gained 8.6% compared to end of April.

Second-tier Stocks

The second-tier RTS shares demonstrated growth in May.

The RTS – 2 Index gained 4.52 % to reach 2,580.63 points (from 2,468.63 points on 30 April). At the end of May RTS – 2 Index was 29.96 % higher compared to last year (1,985.34 points on 31 May 2007).

Of the 78 constituent stocks, 41 had positive impact on RTS-2 dynamics (plus 163.1 points in total). However, 30 stocks behaved negatively (minus 51.6 points). The price for 7 securities remained unchanged.

Significant positive impact was related to the rising price of common shares of JSC Silvinit (plus 33.0 points) and JSC OPIN (plus 22.3 points).

Most of the negative impact was related to the falling prices of common shares of JSC Gaz and JSC Volzhskaya TGK (minus 13.0 points in total).

Power had the largest weight in RTS-2 (16.4 %), followed by telecoms (14.2 %), industrials (12.0%), consumer goods and trading (12.4%) and metals and mining (11.6 %).

Chemicals and Financials contributed most to the RTS-2 gains, respectively plus 41.0 points and plus 16.9 points.

The RTS Family of Indices

In May the Russian stock market experienced a resolute upturn. The RTS reformed its historical maximum. The biggest gainer was the Oil and gas sector: The RTS Oil & Gas gained 21.6%. Financial sector also demonstrated significant upturn (first half of May mainly): RTS-Financials gained 10.2%. The Mettalurgy sector also demonstrated rapid growth rate, however, by the end of May RTS – Metals & Mining index sank significantly and its summary increase was about 7.3%. Only RTS-Industrials was the looser last month (minus 3.3%).