OREANDA-NEWS. July 1, 2011. For the week of June 20-24, 2011 the Russian stock market showed a decline of prices.

The RTS Index (RTSI) went down to 1,857.04 points (1.15%) from 1,878.55 points as of June 17, 2011. At the end of the week the RTS Index was 3.17% higher than a month ago (1,800.04 points as of May 24, 2011) and 32.36% higher than a year ago (1,402.97 points as of June 24, 2010).

Last week's drop on the stock market was accompanied by a decrease of volatility levels when the Russian Volatility Index RTSVX went down by 4.31%.

The US dollar depreciated by 0.47% against the ruble.

Out of 50 RTSI constituents 30 were pulling the Index down (down 28.44 points overall), whereas 10 securities had a positive impact (plus 6.92 points in total). The price for 10 securities remained unchanged.

The negative effect leaders were ordinary shares of Rosneft (down 5.94 points), JSC VTB Bank (down 4.36 points) and Gazprom (down 3.93 points).

The positive impact was mainly related to the growing prices for ordinary shares of Sberbank (plus 3.17 points).

Over 48.54% of the RTSI total capitalization was concentrated in the oil and gas sector. The other large-weight sectors were finance (19.77%) and metallurgy (16.44%).

On the sector level the major negative contributors were the oil and gas (down 14.45 points) and power sectors (down 3.20 points).

RTSI Futures Contracts

For the week of June 20-24, 2011 the trading volume in the RTSI derivatives amounted to 804.14 billion rubles or 7.82 million contracts. The turnover of futures contracts on the RTS Index made up 66.10% of the total FORTS turnover (Futures and Options on RTS) in cash terms.

With the RTSI losing 1.15%, September contracts and December contracts shed 1.38% and 1.37% respectively.

During the reviewed period RTSI linked futures were trading below the spot. By the end of the week September contracts were 34.39 points in backwardation, while for December contracts backwardation stood at 35.94 points.

For the week investor's open interest measured in contracts increased by 14.62%.

The RTS Standard Index

For the week of June 20-24, 2011 the RTS Standard Index experienced negative movement of prices.

The RTS Standard Index went down by 0.61% to 11,109.70 points (11,177.75 points as of June 17, 2011). At the end of the week the RTS Standard Index was 2.52% higher than a month ago (10,836.39 points as of May 24, 2011) and 18.57% higher than a year ago (9,369.39 points as of June 24, 2010).

Out of 15 constituents 11 had a negative impact on the RTS Standard Index (down 133.74 points overall). Four securities moved positively (plus 65.69 points).

The most negative impact was mainly due to the falling prices for ordinary shares of Rosneft (down

40.89    points), JSC VTB Bank (down 29.44 points) and Gazprom (down 19.88 points).

The positive impact was mainly due to the growing prices for ordinary shares of Sberbank (plus

33.90    points).

Out of the blue chips the top fallers were ordinary shares of OJSC "Polyus Gold" that lost 7.79% followed by preferred shares of OJSC Surgutneftegas and ordinary shares of JSC VTB Bank that went down by 5.24% and 5.15% respectively.

The oil & gas sector accounted for 52.85% of the RTS Standard Index' total capitalization. The other large-weight sectors were finance (24.40%) and metallurgy (13.63%).

Second-tier stocks

For the week of June 20-24, 2011 the second tier stocks market demonstrated negative dynamics.

Over the reviewed period the RTS-2 Index lost 1.35% to reach 2,222.35 points (2,252.78 points as of June 17, 2011). At the end of the week the RTS- 2 Index was 4.73% higher than a month ago (2,121.93 points as of May 24, 2011), and 32.66% higher than a year ago (1,675.23 points as of June 24, 2010).

20 constituents out of 58 stocks on the basis of which the RTS-2 Index is calculated had a negative impact on the RTS-2 Index (down 37.44 points overall), whereas seven instruments were offsetting this effect (plus 7.01 points). The price for 31 securities remained unchanged.

The negative impact was mainly due to the falling prices for ordinary shares of JSC "IDGC Holding" (down 11.52 points), JSC "OGK-4" (down 1.56 points) and "MOSTOTREST" (down 3.53 points).

Most of the positive effect was related to the growing prices for ordinary shares of "VSMPO-AVISMA Corporation" (plus 3.14 points) and JSOC Bashneft (plus 1.38 points).

In terms of weight in the RTS-2 Index, the power sector was the largest (38.26%), followed by the metallurgy sector (18.72%) and the oil and gas sector (11.92%).

Most of the RTS-2 Index drop was due to the negative contributions by the securities of the following sectors: power (down 17.86 points) followed by finance (down 4.79 points).

RTS Siberia Index

For the week of June 20-24, 2011 stocks constituting the RTS Siberia Index showed a negative movement.

The RTS Siberia Index went down by 0.26% to close at 900.05 points (902.36 points as of June 17, 2011). At the end of the week the RTS Siberia Index was 1.88% lower than a month ago (917.34 points as of May 24, 2011) and 6.74% higher than a year ago (843.24 points as of June 24, 2010).

Out of the nine component stocks three had a negative impact on the Index's dynamics (down 4.28 points). Two securities moved positively (plus 1.97 points). The price for four securities remained unchanged.

The most negative impact on RTS Siberia Index was coming from the price decline of ordinary shares of JSC Gazprom Neft (down 2.17 points), JSC  Raspadskaya (down 1.11 points) and JSC "RusHydro" (down 1.00 points).

The positive effect had ordinary shares of "OJSC "MMC "NORILSK NICKEL" (plus 1.78 points).

The power sector accounted for 46.37% of the RTS Siberia Index' total capitalization. The other large-weight sectors were metallurgy (38.54%) and oil & gas (15.10%).

The RTS family of indices

Index

Last

Change over (Period), %

Value

Week

Month

Quarter

Year

RTS Index

1,857.04

-1.15%

3.17%

-8.43%

32.37%

RTS Standard Index

11,109.70

-0.61%

2.52%

-9.50%

18.57%

RTS-2 Index

2,222.35

-1.35%

4.73%

-4.40%

32.66%

RTS Metals & Mining Index

354.57

-0.64%

3.18%

-5.18%

43.27%

RTS Oil & Gas Index

215.42

-1.68%

2.67%

-10.70%

27.84%

RTS Consumer & Retail Index

421.57

-1.88%

2.48%

-3.16%

48.21%

RTS Industrial Index

205.08

-0.77%

-0.29%

-12.56%

49.48%

RTS Finances Index

426.44

-2.62%

-0.74%

-12.90%

25.45%

RTS Electric Utilities Index

247.58

-2.30%

5.05%

-8.24%

0.25%

RTS Siberia Index

900.05

-0.26%

-1.89%

-8.82%

6.74%

Russian Volatility Index

23.78

-4.31%

-14.58%

-3.97%

-37.54%

The RTS Index went down by 1.15% to reach 1,857.04 points (1,878.55 points as of June 17, 2011). The RTS Standard Index, the blue chips index, lost 0.61% to reach 11,109.70 points (11,177.75 points as of June 17, 2011). The "second-tier" stock index - RTS-2 experienced a decrease of 1.35% closing at 2,222.35 points (2,252.78 points as of June 17, 2011).

Last week's drop on the stock market was accompanied by a decrease of volatility levels when the Russian Volatility Index RTSVX went down by 4.31% to reach 23.78 points (24.85 points as of June 17, 2011). Last week most of the key economy sectors represented on the Russian stock market demonstrated a negative trend. The largest downturn was reported by the finance sector, with the RTS Finances Index decreasing by 2.62%. A significant decrease was also shown by the power and consumer sectors, with the RTS Electric Utilities Index and RTS Consumer & Retail Index going down by 2.30% and 1.88% respectively.

The regional index, RTS Siberia Index, lost 0.26%.

The US dollar depreciated by 0.47% against the ruble to reach 28.06 rubles per US dollar (28.19 rubles as of June 17, 2011).