OREANDA-NEWS. November 06, 2009. For the week of October 26 -October 30, 2009 the Russian stock market experienced a decline in prices.

The RTS Index (RTSI) went down to 1,348.50 points (7.72%) from 1,461.30 points as of October 23, 2009. At the end of the week the RTS Index was 7.50% higher than a month ago (1,254.52 points as of September 30, 2009) and 77.74% higher than a year ago (758.71 points as of October 30, 2008).

Over the week the US dollar gained 0.89% against the Russian ruble.

Out of 50 RTSI constituents 38 were pulling the Index down (minus 118.35 points overall), 8 securities moved positively (plus 5.58 points overall). The price for 4 securities remained unchanged.

The negative effect leaders were ordinary shares of "LUKOIL" (minus 21.50 points), Gazprom (minus 20.12 points) and Sberbank (minus 17.02 points).

The positive impact was mainly coming from the growing prices for privileged shares of Sberbank (plus 3.47 points).

Over 50% of the RTSI total capitalization continued to be concentrated in the oil and gas sector. The other large-weight sectors were finance (19.82%) and metallurgy (10.74%).

On the sector level the major negative contributors were the oil & gas sector (minus 73.40 points in total) followed by the banks & finance sector (minus 16.72 points overall) and the metals & mining sector (minus 13.06 points in total).

RTSI Futures Contracts

The weekly trading volume in the RTSI derivatives amounted to 401.0 billion rubles or 4.99 million contracts. Futures contracts on the RTS Index remained the most liquid instrument on the Russian derivatives market, making up 72.18% of the total FORTS turnover (Futures and Options on RTS) in cash terms.

With the RTSI losing 7.72%, December contracts (RTS-12.09) and March contracts (RTS-03.10) went down by 9.55% and 8.27% respectively.

Last week RTSI linked futures were mainly trading below the spot. By the end of the reviewed period December contracts were 34.49 points in backwardation. For March contracts backwardation stood at 18.49 points.

For the week investor’s open interest measured in contracts increased by 5.99%.

Second-tier stocks

For the week of October 26 – October 30, 2009 the second tier stocks market demonstrated a negative trend.

Over the reviewed period the RTS-2 Index lost 4.03% to reach 1,292.56 points (1,346.85 points as of October 23, 2009). At the end of the week the RTS-2 Index was 5.81% higher than a month ago (1,221.53 points as of September 30, 2009), and 83.99% higher than a year ago (702.53 points as of October 30, 2008).

42 constituents out of 71 stocks on the basis of which the RTS-2 Index is calculated had a negative impact on the RTS-2 Index (minus 66.11 points overall), 12 instruments behaved positively (plus 11.82 points). The price for 17 securities remained unchanged.

Most of the negative effect was related to the falling prices for ordinary shares of JSC "IDGC Holding" (minus 16.22 points), OAO Raspadskaya (minus 4.61 points) and JSC "INTER RAO UES" (minus 4.16 points).

The positive push was mainly due to the increasing prices for ordinary shares of JSC "TGC-1" (plus 3.21 points).

In terms of weight in the RTS-2 Index, the power sector was the largest (28.5%), followed by the consumer goods & trading sector (16.0%) and the telecom sector (13.2%).

Most of the RTS-2 Index decline was due to the negative contributions by the securities of the following sectors: power (minus 20.79 points in total) followed by metals & mining (minus 10.54 points overall) and telecom (minus 6.03 points in total).

The RTS family of indices

 

Index

Last Value

Change Over (Period), %

Week

Month

Quarter

Week

RTS Index

1,348.54

-7.72%

7.49%

34.68%

77.74%

RTS-2 Index

1,292.56

-4.03%

5.82%

47.11%

83.99%

RTS Oil & Gas Index

180.93

-9.16%

5.49%

23.76%

56.06%

RTS Consumer & Retail Index

214.12

-4.32%

-2.48%

36.17%

87.86%

RTS Metals & Mining Index

214.83

-7.45%

7.13%

38.86%

140.98%

RTS Industrial Index

137.94

0.48%

6.17%

79.75%

21.81%

RTS Electric Utilities Index

197.27

-6.25%

5.28%

44.90%

124.71%

RTS Telecom Index

165.19

-5.18%

5.61%

37.32%

79.42%

RTS Finances Index

337.66

-6.92%

6.46%

57.45%

83.65%

Last week most of the key economy sectors represented on the Russian stock market demonstrated negative dynamics.

The US dollar appreciated by 0.89% against the Russian ruble to reach 29.34 rubles per US dollar (29.09 rubles as of October 23, 2009).

The largest decline was shown by the oil & gas sector. The RTS Oil & Gas Index shed 9.16%. The metal & mining sector also demonstrated a significant decrease, with the RTS Metal & Mining Index losing 7.45%.

A slight growth was only reported by the industrial sector, with the corresponding index going up by 0.48%.