OREANDA-NEWS. May 17, 2010. For the week of May 4 – May 7, 2010 the Russian stock market showed a decline of prices.

The RTS Index (RTSI) went down to 1,369.91 points (12.9%) from 1,572.84 points as of April 30, 2010. At the end of the week the RTS Index was 15.12% lower than a month ago (1,613.88 points as of April 7, 2010) and 45.38% higher than a year ago (942.31 points as of May 7, 2009).

Over the week the US dollar gained 3.44% against the Russian ruble.

Out of 50 RTSI constituents 43 were pulling the Index down (down 202.94 points overall). The price for 7 securities remained unchanged.

The negative effect leaders were ordinary shares of OJSC "MMC "NORILSK NICKEL" (down 30.98 points), Sberbank (down 29.35 points) and Gazprom (down 28.52 points).

Over 50.6% of the RTSI total capitalization was concentrated in the oil and gas sector. The other large-weight sectors were metallurgy (16.59%) and finance (16.45%).

On the sector level the major negative contributors were the oil & gas sector (down 86.59 points in total) followed by the metals & mining sector (down 40.17 points overall) and the banks & finance sector (down 39.24 points in total).

RTSI Futures Contracts

The weekly trading volume in the RTSI derivatives amounted to 540.1 billion rubles or 6.3 million contracts. Futures contracts on the RTS Index remained the most liquid instrument on the Russian derivatives market, making up 75.25% of the total FORTS turnover (Futures and Options on RTS) in cash terms.

With the RTSI losing 12.9%, June contracts (RTS-06.10) and September contracts (09.10) shed 13.89% and 13.65% respectively.

During the reviewed period RTSI linked futures were trading below the spot. By the end of the week June contracts were 46.45 points in backwardation, while for September contracts backwardation stood at 44.1 points.

For the week investor’s open interest measured in contracts grew by 28.55%.

The RTS Standard Index

For the week of May 4 – May 7, 2010 the ruble RTS Standard Index demonstrated a negative trend.

The RTS Standard Index went down by 9.57% to 8,872.6 points (9,811.96 points as of April 30, 2010). At the end of the week the RTS Standard Index was 12.79% lower than a month ago (10,173.66 points as of April 7, 2010) and 27.56% higher than a year ago (6,955.8 points as of May 7, 2009).

All the constituents were pulling the RTS Standard Index down (down 939.36 points overall).

The negative effect leaders were ordinary shares of OJSC "MMC "NORILSK NICKEL" (down 196.97 points), Sberbank (down 160.22 points) and Gazprom (down 148.03 points).

Out of the blue chips the top fallers were ordinary shares of OJSC "MMC "NORILSK NICKEL" that lost 17.94%, ordinary shares of JSC "RusHydro" that shed 14.94% and ordinary shares of JSC VTB Bank that went down by 14.8%.

The oil & gas sector accounted for 57.78% of the RTS Standard Index’ total capitalization. The other large-weight sectors were finance (20.45%) and metallurgy (13.85%).

Ticker

Stock

Weight in the

RTS Standard

Index, %

Weight in the RTS Index, %

LKOHS

LUKOIL, ordinary

18.94%

15.15%

GAZPS

Gazprom, ordinary

17.39%

13.91%

SBERS

Sberbank, ordinary

16.00%

12.80%

SBERPS

Sberbank, preferred

1.42%

1.14%

GMKNS

NORILSK NICKEL, ordinary

10.15%

8.12%

ROSNS

Rosneft, ordinary

9.50%

7.60%

SNGSS

Surgutneftegas, ordinary

7.18%

5.74%

SNGSPS

Surgutneftegas, preferred

2.24%

1.79%

HYDRS

RusHydro, ordinary

3.34%

2.67%

VTBRS

VTB Bank, ordinary

3.03%

2.42%

TATNS

Tatneft, ordinary

2.54%

2.03%

URKAS

Uralkali, ordinary

2.34%

1.87%

FEESS

FGC UES, ordinary

2.24%

1.79%

PLZLS

Polyus Gold, ordinary

2.24%

1.79%

CHMFS

Severstal, ordinary

1.46%

1.17%

Total

 

100.00%

80.01%

Second-tier stocks

For the week of May 4 – May 7, 2010 the second tier stocks market demonstrated negative dynamics.

Over the reviewed period the RTS-2 Index lost 11.02% to reach 1,711.01 points (1,922.99 points as of April 30, 2010). At the end of the week the RTS-2 Index was 10.95% lower than a month ago (1,921.48 points as of April 7, 2010), and 141.79% higher than a year ago (707.64 points as of May 7, 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 211.98 points overall). The price for 16 securities remained unchanged.

Most of the negative effect was related to the falling prices for preferred shares of JSOC Bashneft (down 17.59 points), ordinary shares of OAO Raspadskaya (down 15.26 points) and ordinary shares of JSC "IDGC Holding" (down 13.96 points).

In terms of weight in the RTS-2 Index, the power sector was the largest (29.1%), followed by the consumer goods & trading sector (15.7%) and telecom sector (14.6%).

Most of the RTS-2 Index decline was due to the negative contributions by the securities of the following sectors: power (down 51.79 points in total) followed by telecom (down 31.16 points overall) and oil & gas (down 30.1 points in total).

The RTS family of indices

 

Index

Last Value

Change over (Period), %

 

Week

Month

Quarter

Year

RTS Index

1,369.91

-12.90%

-15.12%

-2.92%

45.38%

RTS Standard Index

8,872.6

-9.57%

-12.79%

-5.63%

27.56%

RTS-2 Index

1,711.01

-11.02%

-10.95%

13.20%

141.79%

RTS Oil & Gas Index

169.14

-11.11%

-13.71%

-3.30%

14.94%

RTS Consumer & Retail Index

282.45

-11.00%

-10.88%

13.97%

91.88%

RTS Metals & Mining Index

256.93

-11.13%

-10.21%

9.52%

83.34%

RTS Industrial Index

152.17

-7.53%

-8.07%

13.29%

128.66%

RTS Electric Utilities Index

239.99

-14.65%

-15.80%

11.46%

109.65%

RTS Telecom Index

203.18

-11.15%

-10.71%

0.12%

81.82%

RTS Finances Index

349.6

-15.02%

-17.82%

-9.33%

97.08%

For the week the RTS Index lost 12.9% to reach 1,369.91 points (1.572.84 points as of April 30, 2010), the RTS Standard Index (blue chips index) shed 9.57% to end up at 8,872.6 points (9,811.96 points as of April 30, 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 15.02%. A significant decrease was also demonstrated by the power sector, with the RTS Electric Utilities Index shedding 14.65%.

The US dollar appreciated by 3.44% against the Russian ruble to reach 30.3 rubles per US dollar (29.29 rubles as of April 30, 2010).