OREANDA-NEWS. January 25, 2011. In 2010, the MICEX Stock Exchange maintained its position as the center of liquidity for the securities of Russian companies. The total volume of transactions on the MICEX Stock Exchange amounted to 64.03 trillion rubles (2.11 trillion US dollars), up 57% on the previous year. In the first 11 month of the year the share of the Russian exchanges in the total volume of on-exchange trading in the secondary market for shares and depository receipts for shares in Russian companies amounted to 75% (2009: 76%, 2008: 63%), the share of foreign exchanges (LSE, DB, NYSE ) reached 25%. The MICEX Stock Exchange accounted for 60%. According to the data of the World Federation of Exchanges (WFE) for January-November 2010, the MICEX SE holds the 19th place in the ranking of the world’s largest exchanges.

In 2010, the number of issuers whose securities are traded on the Stock Exchange remained the same as in 2009: 696 issuers. The number of issues of securities (stocks, bonds, shares of investment funds, RDRs) increased by 9% from 1314 to 1431.

In 2010, HM Revenue and Customs of Great Britain accorded the MICEX Stock Exchange the “Recognised stock exchange” status. This is a sign of a qualitative step forward in the development of the MICEX Group. The new status will contribute to the inflow of foreign securities and new investors to the Russian stock market.

Share market

The results achieved in 2010 indicate a stable position of the share market on the Exchange. They also indicate the return of investors’ interest and confidence: the volume of share trading reached 30.1 trillion rubles, an increase of 15% over 2009. Increase in the volume of repos (+40%) made a significant contribution to the growth of liquidity. Reduction in oil prices in the summer of 2010 against the spring figures was affected the price of shares and adjusted the trading strategies of investors: during these months, the volume of share trading was significantly lower than in the previous year. At the end of the year, activity in the MICEX’s share market increased and in December 2010 the volume of trading exceeded by 7% the figure for December 2009. However, in 2010, the volume of secondary share trading was lower than the volume reached in 2009 by 7%.

The MICEX Index, comprised of 30 stocks of Russia’s leading companies representing the major sectors of the Russian economy grew by 23% to 1687.99 points (2009: +121% to 1370.01 points). At the same time, according to US-based MSCI Inc., in 2010 the MSCI All Country World Index (ACWI), reflecting the situation in 24 developed and 22 emerging markets and including stocks of companies with different levels of capitalization, increased by 11.4% against 31.5% in 2009.

In 2010, the Exchange was actively developing the Market for Innovations and Investments, implemented jointly with ROSNANO on the basis of the IGC Sector. Eight new companies from the innovation sector of the Russian economy entered the public market: Diod, RNT, Farmsintez, Donskoy Radio Parts Plant, regional venture capital funds of the Voronezh Region, the Kaluga Region, the Republic of Bashkortostan and the Chelyabinsk Region (under the management of “Savings and Investments” Management Company). The total volume of placements amounted to over 900 million rubles.

During the year, the capitalization of Russian companies traded on the MICEX Stock Exchange increased by 30% and amounted to 28.97 trillion rubles (31.12.2010).

The most actively traded stocks included Gazprom (26.5% of the total volume of stock transactions), Sberbank (26.5%), Norilsk Nickel (8.4%), Lukoil (6 5%), Rosneft (5.4%), VTB Bank (4.2%), Surgutneftegaz (2.9%), Transneft (2.5% ) RusHydro (2.1%) and Mobile TeleSystems (1.6%).

During the year, the number of unique customers in the MICEX Group’s stock market grew by 6% to 740 thousand, including 713 thousand unique clients – natural persons (individuals). The share of individuals participating in stock transactions (without repos) on the MICEX SE amounted to 47%.

Bond market

In 2010, the volume of bond trading on the MICEX Stock Exchange amounted to 33.9 trillion rubles (+135%): secondary trading accounted for 5.14 trillion rubles (+69%), repos accounted for 27.8 trillion rubles (+169%) and primary placement accounted for 960.5 billion rubles (-7%).

Overall, in 2010, there were 234 bond issues of 66 issuers totaling 964.1 billion rubles, up 63.2% on the previous year. The volume of placements of corporate and regional bonds amounted to 606.2 billion rubles. The volume of placements of commercial papers reached 354.3 billion rubles. Issuers and investors showed interest in commercial papers: since their launch in 2007, 445 issues of 107 issuers have been registered on the Exchange, totaling 1.7 trillion rubles.

Last year, the MICEX Stock Exchange started bond transactions for qualified investors: placements and secondary trading with the possibility of repurchase operations. Today, bonds of 3 issuers are traded in these modes.

The Bank of Russia and credit institutions participating in trading can conduct repos using bonds denominated in foreign currencies as collateral. The Exchange improved the technologies of factoring the accumulated coupon interest in repos and the technologies of performing obligations and effecting settlements of repos and negotiated deals with the optimization of payments and acceleration of receiving necessary funds by participants in trading.

Internationalization of the MICEX’s markets

In 2010, the share of nonresidents in the total volume of trading in the secondary share market (without repos) reached 27% (2009: 24%). The share of nonresidents in the total volume of trading in the corporate bonds market reached 22% (2009: 19%).

In 2010, the European Bank for Reconstruction and Development floated three bond issues, worth 14 billion rubles, on the Exchange. Also, the first foreign country, the Republic of Belarus, floated it bonds on the Exchange (one issue in the amount of 7 billion rubles).

On December 24, 2010, trading was launched in Sberbank’s depositary receipts, a new instrument in the Russian stock market, certifying the right to common registered shares in United Company RUSAL Plc.

Interaction with issuers

One of important results of the Exchange’s activities in 2010 was the improvement of the stock exchange listing and the procedure for admission of securities to trading. This included:

• the preparation of the regulatory framework for the admission of foreign issuers’ securities to trading on the MICEX SE;

• the reduction of the time of making decisions on the admission of securities to trading thanks to changes in the competence of the Exchange’s management bodies.

To improve the technology of interaction with issuers the Exchange initiated transition to electronic document interchange between issuers and the MICEX SE.