OREANDA-NEWS. June 01, 2010. For the week of May 17 ЎV May 21, 2010 the Russian stock market showed a decline of prices.

The RTS Index (RTSI) went down to 1,297.91 points (9.97%) from 1,441.68 points as of May 14, 2010. At the end of the week the RTS Index was 19.40% lower than a month ago (1,610.23 points as of April 21, 2010) and 29.61% higher than a year ago (1001.36 points as of May 21, 2009).

Over the week the US dollar gained 2.99% against the Russian ruble.

Out of 50 RTSI constituents 46 were pulling the Index down (down 144.63 points overall), whereas 2 securities had a positive impact (plus 0.86 points in total). The price for 2 securities remained unchanged.

The negative effect leaders were ordinary shares of Sberbank (down 26.94 points), "LUKOIL" (down 21.71 points) and Gazprom (down 17.83 points).

The positive impact was mainly related to the growing prices for ordinary shares of JSC "Polymetal" (plus 0.81 points).

Over 49% of the RTSI total capitalization was concentrated in the oil and gas sector. The other large-weight sectors were metallurgy (17.52%) and finance (16.75%).

On the sector level the major negative contributors were the oil & gas sector (down 76.55 points in total) followed by the banks & finance sector (down 31.89 points in total) and the metals & mining sector (down 11.57 points overall).

RTSI Futures Contracts

The weekly trading volume in the RTSI derivatives amounted to 626.0 billion rubles or 7.4 million contracts. Futures contracts on the RTS Index remained the most liquid instrument on the Russian derivatives market, making up 73.03% of the total FORTS turnover (Futures and Options on RTS) in cash terms.

With the RTSI losing 9.97%, June contracts (RTS-06.10) and September contracts (09.10) shed 9.13% and 8.61% respectively.

During the reviewed period RTSI linked futures were trading below the spot. By the end of the week June contracts were 7.97 points in backwardation, while for September contracts backwardation stood at 4.07 points.

For the week investorЎ¦s open interest measured in contracts decreased by 1.28%.

The RTS Standard Index

For the week of May 17 ЎV May 21, 2010 the ruble RTS Standard Index demonstrated a negative trend.

The RTS Standard Index went down by 7.28% to 8,609.16 points (9,284.6 points as of May 14, 2010). At the end of the week the RTS Standard Index was 14.46% lower than a month ago (10,064.61 points as of April 21, 2010) and 22.35% higher than a year ago (7,036.74 points as of May 21, 2009).

All the constituents were pulling the RTS Standard Index down (down 675.48 points overall).

The negative effect leaders were ordinary shares of Sberbank (down 170.87 points), †п†б†п "LUKOIL" (down 124.05 points) and Gazprom (down 94.61 points).

Out of the blue chips the top fallers were preferred shares of Surgutneftegas that lost 19.83%, ordinary shares of OJSC Uralkali that shed 15.09% and ordinary shares of Sberbank that went down by 10.99%.

The oil & gas sector accounted for 56.10% of the RTS Standard IndexЎ¦ total capitalization. The other large-weight sectors were finance (20.73%) and metallurgy (14.99%).

Ticker

Stock

Weight in the

RTS Standard

Index, %

Weight in the RTS Index, %

LKOHS

LUKOIL, ordinary

17.92%

14.41%

GAZPS

Gazprom, ordinary

17.36%

13.96%

SBERS

Sberbank, ordinary

16.08%

12.93%

SBERPS

Sberbank, preferred

1.43%

1.15%

GMKNS

NORILSK NICKEL, ordinary

11.25%

9.05%

ROSNS

Rosneft, ordinary

9.84%

7.91%

SNGSS

Surgutneftegas, ordinary

6.83%

5.49%

SNGSPS

Surgutneftegas, preferred

1.93%

1.55%

HYDRS

RusHydro, ordinary

3.70%

2.98%

VTBRS

VTB Bank, ordinary

3.23%

2.59%

FEESS

FGC UES, ordinary

2.31%

1.86%

PLZLS

Polyus Gold, ordinary

2.27%

1.83%

TATNS

Tatneft, ordinary

2.23%

1.79%

URKAS

Uralkali, ordinary

2.16%

1.73%

CHMFS

Severstal, ordinary

1.47%

1.18%

Total

 

100.00%

80.40%

Second-tier stocks

For the week of May 17 ЎV May 21, 2010 the second tier stocks market demonstrated negative dynamics.

Over the reviewed period the RTS-2 Index lost 8.53% to reach 1,591.52 points (1,740.00 points as of May 14, 2010). At the end of the week the RTS-2 Index was 18.82% lower than a month ago (1,960.55 points as of April 21, 2010), and 103.46% higher than a year ago (782.21 points as of May 21, 2009).

54 constituents out of 70 stocks on the basis of which the RTS-2 Index is calculated had a negative impact on the RTS-2 Index (down 155.55 points overall), 3 instruments moved positively (plus 7.07 points). The price for 14 securities remained unchanged.

Most of the negative effect was related to the falling prices for ordinary shares of OJSC "Magnit" (down 22.61 points), ordinary shares of JSC "OGK-2" (down 12.45 points) and ordinary shares of JSC "IDGC Holding" (down 11.23 points).

The positive impact was mainly due to the growing prices for ordinary shares of JSC "Polymetal" (plus 6.56 points).

In terms of weight in the RTS-2 Index, the power sector was the largest (29.0%), followed by the consumer goods & trading sector (16.0%) and telecom sector (14.3%).

Most of the RTS-2 Index decline was due to the negative contributions by the securities of the following sectors: power (down 47.27 points in total) followed by consumer goods & trading (down 32.39 points overall) and telecom (down 16.34 points in total).

The RTS family of indices

 

Index

Last Value

Change over (Period), %

 

Week

Month

Quarter

Year

RTS Index

1,297.91

-9.97%

-19.40%

-8.80%

29.62%

RTS Standard Index

8,609.16

-7.28%

-14.46%

-7.95%

22.35%

RTS-2 Index

1,591.52

-8.53%

-18.82%

3.88%

103.47%

RTS Oil & Gas Index

155.77

-10.81%

-19.95%

-11.72%

4.29%

RTS Consumer & Retail Index

268.06

-9.53%

-16.18%

5.44%

73.31%

RTS Metals & Mining Index

249.6

-6.05%

-12.49%

0.40%

67.23%

RTS Industrial Index

145.93

-3.42%

-12.40%

0.91%

107.55%

RTS Electric Utilities Index

234.29

-8.30%

-18.51%

8.92%

87.31%

RTS Telecom Index

187.78

-7.64%

-18.27%

-7.42%

58.50%

RTS Finances Index

315.98

-12.38%

-25.56%

-19.81%

51.32%

For the week the RTS Index lost 9.97% to reach 1,297.91 points (1.441.68 points as of May 14, 2010), the RTS Standard Index (blue chips index) shed 7.28% to end up at 8,609.16 points (8,872.6 points as of May 14, 2010)

Last week all the key economy sectors represented on the Russian stock market demonstrated negative dynamics. The largest decline was shown by the financial sector. The RTS Finances Index fell 12.38%. A significant decrease was also demonstrated by the oil & gas sector, with the RTS Oil & Gas Index shedding 10.81%. The slightest decline was seen in the industrial sector, with the RTS Industrial Index shrinking by 3.42%.

The US dollar appreciated by 2.99% against the Russian ruble to reach 30.8 rubles per US dollar (29.9 rubles as of May 14, 2010).