OREANDA-NEWS. In March 2013, the Russian stock market reflected the negative trend. The MICEX Index was down 3.19% to 1,438.57 points (1,486.04 points as of Feb. 28, 2013) and the dollar-denominated RTS Index fell by 4.85% to 1,460.04 points (1,534.41 points as of Feb. 28, 2013).

For the last month, the U.S. Dollar went up by 1.23% against the ruble.

The stock market volatility decreased last month with the Russian Volatility Index falling by 19.25% to 17.45 points (21.61 points as of Feb. 28, 2013).

Last month most of the key economy sectors represented on the Russian stock market behaved negatively. The largest downturn was reported by the electric utilities with the relevant sector index falling by 11.45%. A significant decrease was also shown by the metals & mining and the financials with the relevant sector indices down 10.82% and 9.01%.

The RTS Standard, the Blue Chips Index, decreased by 3.48% to 9,766.50 points (10,118.12 points as of Feb. 28, 2013).

Second-Tier Stocks Indices reflected the negative trend. The ruble-denominated MICEX SC Index depreciated by 8.17% to 3,296.30 points (3,589.68 points as of Feb. 28, 2013). The dollar- denominated RTS-2 Index lost 10.13% reaching

1,457.25 points (1,621.46 points as of Feb. 28, 2013).

MICEX & RTS Indices, the main indices of the Moscow Exchange

In March 2013, the Russian stock market reflected the negative trend. The MICEX Index was down 3.19% to 1,438.57 points (1,486.04 points as of Feb. 28, 2013) and the dollar-denominated RTS Index fell by 4.85% to 1,460.04 points (1,534.41 points as of Feb. 28, 2013).

At the end of the month, the MICEX Index was 5.19% lower than a year ago (1,517.34 points as of Mar. 30, 2012), the RTS Index was 10.85% lower than a year ago (1,637.73 points as of Mar. 30, 2012).

Last month's decrease of the RTS Index was accompanied by the decrease of volatility levels, when the Russian Volatility Index RTSVX was down 19.25%.

Trading volume of securities included into the Moscow Exchange Indices' list of constituents amounted to RUB 596.85 billion, and the market capitalization of the Indices' constituents amounted to RUB 19,721.02 billion.

At the end of the month, 42 constituents of the old and the reviewed MICEX Index lists were pushing the Index down (minus 3.79%), and 9 constituents behaved positively (plus 0.60%).

On the sector level, the major negative impact was made by the financials (minus 1.22%) and the metal & mining (minus 0.72%).

The most negative impact on the MICEX Index was mainly due to the falling prices for ordinary shares of Sberbank of Russia (minus 0.77%), GAZPROM (minus 0.41%), and VTB Bank (minus 0.33%). The most positive impact on the MICEX Index was coming from the price increase of the ordinary shares of LUKOIL (plus 0.21%), Mobile TeleSystems (plus 0.11%).

The most negative impact on the RTS Index was mainly due to the falling prices for ordinary shares of Sberbank of Russia (minus 0.99%), GAZPROM (minus 0.64%) and VTB Bank (minus 0.38%). The most positive impact on the RTS Index was coming from the price increase of the ordinary shares of Magnit (plus 0.06%) and Mobile TeleSystems (plus 0.02%).

The oil and gas sector accounted for 51.85% of the MICEX Index total capitalization. The other large weight sectors were financials (18.51%) and metallurgy (8.24%).

Blue chips Index

In March 2013, the ruble-denominated RTS Standard, the Blue Chips Index, showed a negative trend.

The RTS Standard Index was down 3.48% to 9,766.50 points (10,118.12 points as of Feb. 28, 2013). At the end of the month the RTS Standard was 5.75% lower than a year ago (10,362.35 points as of Mar. 30, 2012).

At the end of the month, 13 out of 15 securities included into the RTS Index constituent list were pushing the RTS Standard down (minus 3.72%), and two constituents behaved positively (plus 0.24%).

The most negative impact on the RTS Standard Index was due to the falling prices for ordinary shares of Sberbank of Russia (minus 0.99%) and GAZPROM (minus 0.54%).

The positive impact was due to the rising prices for ordinary shares of LUKOIL (plus 0.22) and preferred shares of Sberbank of Russia (plus 0.02%).

The oil and gas sector accounted for 57.10% of the Blue Chips Index total capitalization. The other large weight sectors were financials (22.34%) and metallurgy (7.31%).

Second-tier Stocks Index

In March 2013, Second-Tier Stocks Indices reflected the negative trend. The ruble-denominated MICEX SC Index depreciated by 8.17% to 3,296.30 points (3,589.68 points as of Feb. 28, 2013). The dollar-denominated RTS-2 Index lost 10.13% reaching

1,457.25 points (1,621.46 points as of Feb. 28, 2013).

At the end of the month the MICEX SC Index was 15.28% lower than a year ago (3,890.77 points as of Mar. 30, 2012). The RTS-2 Index was 23.09% lower than a year ago (1,894.82 points as of Mar. 30, 2012).

At the end of the month, 42 out of 52 securities included into the old and the reviewed RTS-2 Index constituent lists were pushing the Index down (minus 10.62%), and 9 constituents behaved positively (plus 0.49%). The price of one constituent stock remained unchanged.

The most negative impact on the RTS-2 Index was mainly due to the falling prices for ordinary shares of Quadra - Power Generation (minus 0.78%) and TGK 1 (minus 0.73%).

The most positive impact was due to the rising prices of Chelyabinsk Zinc Plant (plus 0.13%) and PROTEK (plus 0.12%).

The most negative impact on the Second-Tier Stocks Indices was mainly due to the falling prices for securities of the electric utilities (minus 4.41%) and the chemicals (minus 1.60%).

The electric utilities sector accounted for 39.40% of the RTS-2 Index total capitalization. The other large weight sectors were industrials (12.65%) and consumer goods & retail (11.43%).

Debt Market

The Russian Government Bond Index (RGBI,

total return) was down 0.22% to 137.67 last month

(138.76 points as of Feb. 28, 2013). The yield to maturity of the securities being the part of the calculation formula was up 26 basis points to 6.64%.

The Municipal Bond Index (MICEX MBI TR, total return) showed the positive trend and reached 170.11 growing by 0.30% (169.60 as of Feb. 28, 2013).

The total return value of the MICEX Corporate

Bond Index (MICEX CBI TR) was up 0.42% to 229.63

points. The yield to maturity of the securities being the part of the calculation formula was up 9 basis points to 8.15%.

The conservative investment strategy tracking the last month pension index could have resulted in a gain of 0.45% per month. The aggressive investment strategy based on the pension index could have brought a loss of 0.72% per month.

The bond overnight repo rate was down 6 basis points (from 6.16% to 6.10%). The equity overnight repo rate was down 2 basis points and equaled 5.99%.

Index Derivatives

In March 2013, the total trading volume in index futures and options on the Moscow Exchange Derivatives Market equaled RUB 2, 803.49 billion or 30.79 million contracts.

Last month's trading volume for the most liquid contract on FORTS, futures contract on the RTS Index, amounted to RUB 2, 475.93 billion or

27.31 million contracts.

The RTS Index futures contract traded in backwardation last month. By the end of the month the RTS Index decreased 4.85%, while the March and June futures contracts were down 5.59% and 5.62% respectively. On Mar. 15, the RTS Index March futures contracts were settled. The settlement price equaled 154,978 points.

The total investor's open interest measured in RTS Index futures decreased by 23.78%.

During the month the trading volume in futures contract on the MICEX Index was RUB

22.32 billion or 153.07 thousand contracts. Open interest in the contract on the MICEX Index decreased by 75.81% for the month.

Trading volume in options on RTS Index futures totaled RUB 298.97 billion or 3.27 million contracts last month. Open interest of RUB 98.15 billion or 1.10 million contracts was fixed. Put options made up 44.85% of the total open interest for these contracts. The 155.000 strike calls and 120.000 strike puts had the highest open interest.

The total investor's open interest measured in options on the RTS index futures decreased by 13.99%.