OREANDA-NEWS. March 22, 2011. For the week of March 9-11, 2011 the Russian stock market showed a decline of prices.

The RTS Index (RTSI) went down to 1,929.59 points (4.72%) from 2,025.17 points as of March 5, 2011. At the end of the week the RTS Index was 2.53% higher than a month ago (1,881.90 points as of February 11, 2011) and 28.29% higher than a year ago (1,504.04 points as of March 11, 2010).

Decline in prices on the stock market was accompanied by an increase of volatility levels when the Russian Volatility Index RTSVX went up by 8.04%.

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

Out of 50 RTSI constituents 33 were pulling the Index down (down 96.30 points overall), whereas five securities had a positive impact (plus 0.72 points in total). The price for 12 securities remained unchanged.

The negative effect leaders were ordinary shares of JSC  "LUKOIL" (down 15.99 points), Gazprom (down 13.59 points) and "OJSC "MMC "NORILSK NICKEL" (down 13.54 points).

The positive impact was mainly related to the growing prices for ordinary shares of V.Bank (plus 0.41 points).

Over 51.36% of the RTSI total capitalization was concentrated in the oil and gas sector. The other large-weight sectors were finance (16.19%) and metallurgy (15.86%).

On the sector level the major negative contributors were the oil & gas sector (down 46.54 points in total) and metallurgy (down 19.38 points in total).

RTSI Futures Contracts

For the week of March 9-11, 2011 the trading volume in the RTSI derivatives amounted to 452.34 billion rubles or 4.04 million contracts. The turnover of futures contracts on the RTS Index made up 64.67% of the total FORTS turnover (Futures and Options on RTS) in cash terms.

With the RTSI losing 4.72%, March contracts and June contracts shed 5.11% and 4.76% respectively.

During the reviewed period RTSI linked futures were trading below the spot. By the end of the week March contracts were 10.09 points in backwardation, while for June contracts backwardation stood at 26.69 points.

For the week investor's open interest measured in contracts increased by 4.28%.

The RTS Standard Index

For the week of March 9-11, 2011 the RTS Standard Index experienced negative movement of prices.

The RTS Standard Index went down by 3.83% to 11,724.27 points (12,190.66 points as of March 5, 2011). At the end of the week the RTS Standard Index was 0.31% lower than a month ago (11,759.78 points as of February 11, 2011) and 21.85% higher than a year ago (9,622.13 points as of March 11, 2010).

Out of 15 constituents 14 had a negative impact on the RTS Standard Index (down 466.39 points overall). The price of one security remained unchanged.

The most negative impact was mainly due to the falling prices for ordinary shares of JSC  "LUKOIL" (down 85.25 points) and "OJSC "MMC "NORILSK NICKEL" (down 80.69 points) and Rosneft (down 63.74 points).

Out of the blue chips the top fallers were ordinary shares of OJSC Uralkali, Rosneft "OJSC "MMC "NORILSK NICKEL" that lost 7.99%, 5.86% and 5.77% respectively.

The oil & gas sector accounted for 57.48% of the RTS Standard Index' total capitalization. The other large-weight sectors were finance (19.88%) and metallurgy (13.99%).

Second-tier stocks

For the week of March 9-11, 2011 the second tier stocks market demonstrated a downturn of prices.

Over the reviewed period the RTS-2 Index lost 1.77% to reach 2,307.28 points (2,348.82 points as of March 5, 2011). At the end of the week the RTS-2 Index was 0.78% higher than a month ago (2,289.44 points as of February 11, 2011), and 37.34% higher than a year ago (1,679.94 points as of March 11, 2010).

26 constituents out of 68 stocks on the basis of which the RTS-2 Index is calculated had a negative impact on the RTS-2 Index (down 56.10 points overall), whereas nine instruments were offsetting this effect (plus 14.56 points). The price for 33 securities remained unchanged.

Most of the negative effect was related to the falling prices for ordinary shares of JSC  Raspadskaya (down 11.21 points), JSC "Polymetal" (down 8.04 points) and JSC "IDGC Holding" (down 7.00 points).

The positive impact was mainly due to the growing prices for preferred shares of JSC CenterTelecom (plus 7.55 points).

In terms of weight in the RTS-2 Index, the power sector was the largest (27.8%), followed by the consumer goods & trading sector (17.9%) and metals & mining sector (13.9%).

Most of the RTS-2 Index decrease was due to the negative contributions by the securities of the following sectors: metallurgy (down 19.54 points overall) and power (down 17.18 points in total).

RTS Siberia Index

For the week of March 9-11, 2011 stocks constituting the RTS Siberia Index showed negative dynamics.

The RTS Siberia Index went down by 3.64% to close at 961.82 points (998.14 points as of March 5, 2011). At the end of the week the RTS Siberia Index was 2.96% lower than a month ago (991.18 points as of February 11, 2011) and 12.61% higher than a year ago (854.11 points as of March 11, 2010).

Out of the 11 component stocks five had negative impact on the Index's dynamics (down 36.31 points). The price for six securities remained unchanged.

The most negative impact on RTS Siberia Index was coming from the price decline of ordinary shares of JSC  Raspadskaya (down 18.81 points), "OJSC "MMC "NORILSK NICKEL" (down 9.65 points) and JSC "RusHydro" (down 3.52 points).

The positive effect leaders were ordinary shares of JSC Gazprom Neft (plus 6.34 points).

The metallurgy sector accounted for 37.2% of the RTS Siberia Index' total capitalization. The other large-weight sectors were power (32.2%) and oil & gas (18.6%).

The RTS family of indices

For the week the RTS Index lost 4.72% to reach 1,929.59 points (2,025.17 points as of March 5, 2011), the RTS Standard Index (blue chips index) lost 3.83% to end up at 11,724.27 points (12,190.66 points as of March 5, 2011).

Drop on the stock market was accompanied by an increase of volatility levels when the Russian Volatility Index RTSVX went up by 8.04% to reach 25.33 points (23.44 points as of March 5, 2011).

Last week most of the key economy sectors represented on the Russian stock market demonstrated negative dynamics. The largest decline was shown by the metallurgy sector. The RTS Metals & Mining Index fell 4.89%. The substantial downturn was also demonstrated by oil & gas and power sectors with the RTS Oil & Gas Index and RTS Electric Utilities Index decreasing by 4.40% and 4.00% respectively.

The regional RTS Siberia Index lost 3.64%.

The US dollar appreciated by 0.89% against the Russian ruble to reach 28.44 rubles per US dollar (28.19 rubles as of March 5, 2011).