OREANDA-NEWS. Over the week of July 22-26, 2013 the Moscow Exchange Indices reflected the negative trend on the Russian stock market. The MICEX Index was down 1.30% to 1,403.14 (1,421.67 as of July 19, 2013) and the dollar-denominated RTS Index fell by 2.46% to 1,348.37 (1,382.33 as of July 19, 2013).

The US dollar appreciated by 0.43% against the ruble last week.

The stock market volatility decreased last week with the Russian Volatility Index falling by 10.26% to 21.61 (24.08 as of July 19, 2013).

Last week most of the key economic sectors represented on the Russian stock market behaved negatively. The largest downturn was reported by the chemicals with the relevant sector index falling by 4.90%. A significant decrease was also shown by the electric utilities and the oil and gas with the relevant sector indices being down 3.55% and 1.06% respectively. The largest upturn was reported by the telecommunication (+3.31%).

The MICEX Innovation Index added 0.90% to 436.78 (432.88 as of July 19, 2013).

The Blue-Chip Index decreased by 1.42% to 9,501.15 (9,638.40 as of July 19, 2013).

The Second-Tier Index depreciated by 0.66% to 3,021.24 (3,041.30 as of July 19, 2013). The Broad Market Index lost 1.27% to 993.07 (1005.87 as of July 19, 2013).

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

Over the week of July 22-26, 2013 the Moscow Exchange Indices reflected the negative trend on the Russian stock market. The MICEX Index was down 1.30% to 1,403.14 (1,421.67 as of July 19, 2013) and the dollar- denominated RTS Index fell by 2.46% to 1,348.37 (1,382.33 as of July 19, 2013).

At the end of the week the MICEX Index was 6.27% higher than a month ago (1,320.39 as of June 26, 2013) and 1.38% higher than a year ago (1,384.06 as of July 26, 2012). The RTS Index was 6.92% higher than a month ago (1,261.13 as of June 26, 2013) and 0.11% lower than a year ago (1,349.90 as of July 26, 2012).

Last week’s decrease of the RTS Index was accompanied by the decrease of volatility levels, when the Russian Volatility Index RTSVX was down 10.26%.

The most negative impact on the MICEX Index was mainly due to the falling prices for ordinary shares of Sberbank (-0.69%), OJSC Uralkali (-0.52%) and OAO "LUKOIL" (-0.23%).

Trading volume of securities included into the Moscow Exchange Indices’ list of constituents amounted to RUB 118.77 billion, and the market capitalization of the Indices’ constituents amounted to RUB 19,389.82 billion.

At the end of the week, 29 constituents of the MICEX Index list were pushing the Index down (-2.11%), while 20 securities behaved positively (+0.81%). The price of one constituent stock remained unchanged.

On the sector level, the major negative impact was made by the financials (-0.66%) and the chemicals (-0.53%).

The oil & gas sector accounted for 50.44% of the MICEX Index total capitalization. The other large-weight sectors were the finance (19.75%) and the telecommunication (7.23%).

Blue Chip Index

For the week of July 22-26, 2013 the Blue Chip Index showed a negative trend.

The Blue Chip Index was down 1.42% to 9,501.15 (9,638.40 as of July 19, 2013). At the end of the week the Blue Chip Index was 6.48% higher than a month ago (8,923.32 as of June 26, 2013) and 0.42% higher than a year ago (9,461.26 as of July 26, 2012).

At the end of the week, 10 out of 17 securities included into Index list were pushing the Blue Chip Index down (-2.23%), while 6 shares behaved positively (+0.81%). The price of one constituent stock remained unchanged.

The most negative impact on the Blue Chip Index was mainly due to the falling prices for ordinary shares of Sberbank (-0.79%) and OJSC Uralkali (-0.59%).

The most positive impact was due to the rising prices for ordinary shares of OJSC "Magnit" (+0.41%) and MTS OJSC (+0.24%).

The oil & gas sector accounted for 55.40% of the Blue Chip Index total capitalization. The other large-weight sectors were the finance (20.02%) and the telecommunication (7.85%).

Broad Market and Second- Tier Indices

For the week of July 22 - 26, 2013 the Second- Tier Index depreciated by 0.66% to 3,021.24 (3,041.30 as of July 19, 2013). The Broad Market Index lost 1.27% to 993.07 (1005.87 as of July 19, 2013).

At the end of the week the Second-Tier Index was 2.18% higher than a month ago (2,956.71 as of June 26, 2013) and 7.48% lower than a year ago (3,265.53 as of July 26, 2012).

The Broad Market Index was 6.27% higher than a month ago (934.49 as June 26, 2012) and 1.02% higher than a year ago (983.00 as of July 26, 2012).

At the end of the week, 34 securities included into the Second-Tier Index constituent list were pushing the Index down (-1.73%), while 15 securities behaved positively (+1.07%). The price of one constituent stock remained unchanged.

The most negative impact on the Second-Tier Index was due to the falling prices of IDGC "Volga TGC" (-0.21%) and JSC "TGC-1" (-0.17%).

The most negative impact on the Broad Market Index was mainly due to the falling prices for ordinary shares of Sberbank (-0.70%) and OJSC Uralkali (-0.49%).

The most negative impact on the Second-Tier Index was mainly due to the falling prices for securities of the electric utilities (-1.05%) and the chemicals (-0.10%).

The electric utilities sector accounted for 37.33% of the Second-Tier Index total capitalization. The other large-weight sectors were the consumer goods & retail (18.78%) and the industrials (11.26%).

Debt Market

The Russian Government Bond Index (RGBI, total return) was down 0.70% to 135.43 last week (136.38 points as of July 19, 2013). The yield to maturity of the securities being the part of the calculation formula was up 11 basis points to 7.06%.

The Municipal Bond Index (MICEX MBI TR, total return) showed the positive trend and reached 174.14 basis points (173.96 as of July 19, 2013).

The total return value of the MICEX Corporate Bond Index (MICEX CBI TR) was up 0.21% to 235.86 points.

The conservative investment strategy tracking the last week’s pension index could have resulted in a gain of 0.20% per week. The aggressive investment strategy based on the pension index could have brought a loss of 0.49% per week.

The bond overnight repo rate was up 10 basis points (from 6.14% to 6.24%). The equity overnight repo rate was equaled 6.13%.

Index Derivatives

For the week of July 22-26, 2013 the total trading volume in index futures and options on the Moscow Exchange Derivatives Market equaled RUB 441.36 billion or 4.95 million contracts.

Last week’s trading volume for the most liquid contract on FORTS, futures contract on the RTS Index, amounted to RUB 393.89 billion or 4.43 million contracts.

The RTS Index futures contract traded in backwardation last week. By the end of the week the RTS Index lost 2.46%, while the September and the December futures contracts down 2.20% and 2.37% respectively.

The total investor’s open interest measured in RTS Index futures increased by 1.73%.

During the week the trading volume in futures contract on the MICEX Index was RUB 3.87 billion or 27.21 thousand contracts. Open interest in the MICEX Index futures increased by 0.46%.

Trading volume in options on RTS Index futures totaled RUB 42.32 billion or 480.75 thousand contracts last week. Open interest of RUB 103.90 billion or 1.21 billion contracts was fixed. Put options made up 60.44% of the total open interest for these contracts. The 150.000 strike calls and 120.000 strike puts had the highest open interest.

The total investors’ open interest measured in options on the RTS index futures increased by 14.69%.