OREANDA-NEWS. October 25, 2012. For the week of October 15 - 19, 2012 the MICEX Index was up 0.97% to 1,460.06 (1,446.01 points as of October 12, 2012).

The RTS Index calculated based on prices in US dollar grew by 1.50% to 1,494.44 (1,472.36 points as of October 12, 2012). The US dollar depreciated by 1.43% against the ruble.

The stock market volatility decreased last week with the Russian Volatility Index falling by 13.20% to 24.99 points (28.79 points as of October 12, 2012).

Last week most of the key economy sectors represented on the Russian stock market demonstrated a positive trend. The largest upturn was reported by the oil and gas sector with the relevant sector index growing by 1.73%. A significant increase was also shown by the telecommunications and the consumer and retail sector with the relevant sector indices up 1.63% and 0.69% respectively. The largest downturn was reported by the electric utilities with the sector index falling by 1.29%.

The MICEX Innovation Index lost 1.21%. The largest upturn was shown by the small cap companies. The MICEX Small Cap Index gained 1.14%. The MICEX Large Cap Index was up 1.08% in contrast with the MICEX Mid Cap Index which was down 0.83%.

For the week of October 15 - 19, 2012 the Russian stock market showed a positive trend. The MICEX Index was up 0.97% to 1,460.06 (1,446.01 as of October 12, 2012).

At the end of the week the MICEX Index was 2.61% lower than a month ago (1,499.12 points as of September 19, 2012) and 2.78% higher than a year ago (1,420.50 as of October 19, 2011).

Trading volume of securities included into the MICEX Index constituents list traded on the Main market equaled RUB136.17 billion. By the end of the week the market capitalization of the Index component stocks amounted to RUB18,669.82 billion.

19 constituents of the MICEX Index list were pushing the Index upwards (plus 1.44%) and 11 constituents behaved negatively (minus 0.47%).

On the sector level the major positive contributors were the oil & gas (plus 0.98%) and the financial sectors (plus 0.28%). The most positive impact was mainly due to the rising prices for ordinary shares of LUKOIL (plus 0.34%) followed by Sberbank (plus 0.23%) and Gazprom (plus 0.20%).

The oil & gas sector accounted for 52.80% of the MICEX Index total capitalization. The other large weight sectors were the financials (16.43%) and metallurgy (9.59%).

For the week of October 15 - 19, 2012 the RTS Index rose by 1.50% to 1,494.44 (1,472.36 as of October 12, 2012). At the end of the week the RTS Index was 1.52% lower than a month ago (1,517.58 as of September 19, 2012) and 3.88% higher than a year ago (1,438.63 as of October 19,

2011).

Last week’s increase of the RTS Index was accompanied by the decrease of volatility levels, when the Russian Volatility Index RTSVX was down 1.43%.

The US dollar depreciated by 1.43%.

31 constituents of the RTS Index list were pulling the Index upwards (plus 1.88%), 19 constituents behaved negatively (minus 0.38%).

On the sector level the positive impact was caused by the oil & gas (plus 1.22%) and financial (plus 0.41%) sectors.

The positive impact was mainly related to the rising prices of ordinary shares of LOKOIL (plus 0.42%), Sberbank (plus 0.33%) and Gazprom (plus 0.29%).

Debt Market

The Russian Government Bond Index (RGBI) was up 0.56% to 134.44 points last week (133.69 points as of October 12, 2012).

RGBI total return value grew by 0.69% to 300.58 points. The weighted average return of the securities being the part of the calculation formula fell by 11 basis points to 7.09%.

The Municipal Bond Index (MICEX MBI TR, weighted average return) showed the positive trend and reached 163.60 basis points growing by 0.22% (163.24 as of October 12,

2012).

The total return value of the MICEX Corporate Bond Index (MICEX CBI TR) was up 0.21% to 219.46 points.

The conservative investment strategy tracking the last week’s pension index could have resulted in a gain of 0.17% per week. The aggressive investment strategy based on the pension index could have brought a gain of 0.27% per week.

The bond overnight repo rate was down 27 basis points (from 6.33% to 6.06%).The equity overnight repo rate lost 20 basis points to 5.86%.

For the week of October 15 - 19, 2012 the total trading volume in index futures and options on the FORTS derivatives market equaled RUB614.36 billion representing 6.70 million contracts.

Last week’s trading volume for the most liquid contract on FORTS, futures contract on the RTS Index, amounted to RUB553.13 billion representing 6.03 million contracts.

The RTS Index futures contract traded in backwardation last week. By the end of the week the RTS Index gained 1.50%, while the March and December futures contracts were up 1.37% and 1.47% respectively. The total investor’s open interest measured in RTS Index futures increased by 4.25%.

During the week FORTS trading volume in futures contract on the MICEX Index was RUB2.63 billion representing 17.86 thousand contracts. Open interest in the contract on the MICEX Index increased by 22.79% for the week.

Trading volume in options on RTS Index futures totaled RUB57.74 billion representing 642.65 thousand contracts. Open interest of RUB80.00 billion or 904.67 thousand contracts was fixed. Call options made up 50.56% of the total open interest for these contracts.

The 160.000 strike calls and 135.000 strike puts had the highest open interest. The total investor’s open interest measured in options on the RTS index futures increased by 32.91%.