Market Overview: Russian Stock Market RTS 2011, wk.

14
Week 14 was positive for Russian Stock Market (RTS). RTS continued to update this year
maximum peaking at 2122.15 points with 1.98% increase. RTS suffered from the small declines on
Tuesday and Thursday, but at the same time growth during Friday was tremendous and as result
RTS experienced 1.98% increase from the beginning of the week. Oil prices continue to push
Russian markets up. Civil war in Lybia is far from the end, as well as riots in Arabian countries.
Winners of this week are Gazprom (GAZPS) and Tatneft (TATNS) with 3.31% and 3.94 %
growth respectively. The highest decline experienced Severstal (CHMFS), resulting in 1.29%
decrease. Telecommunication sector experienced the biggest growth with +3.09%. Industry sector
was not as successful as other sectors of Russian market and ended the week with -0.52% result.

Chart 1 RTS index during week 15. Source: tikr.ru

This week the biggest winners are Gazprom (GAZPS) and Tatneft (TATNS), they managed to
increase share prices by 3.31% and 3.94% respectively. Both companies are leading oil producers in
Russia. Share prices development can be seen in the figure 1 for GAZPS and in the figure 2 for
TATNS. Surprisingly, political issues have not been reflected on share prices. As Russia was
against intervention in Libya, former Libyan Energy Minister Omar Fati Ben Shatvan said that
Russia would not be allowed to use Libyan oil fields any more. TATNS calculated that their losses
are about 70 million EUR. However, Libyan conflict still works for Russian oil companies. Oil
prices are still increasing; therefore GAZPS and TATNS get higher revenues.

1 Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.
Market Overview: Russian Stock Market RTS 2011, wk. 14

Figure 1. GAZPS share prices. Source: tikr.ru

Figure 2. TATNS share prices. Source: tikr.ru

Last week’s main happenings – interest rate changing in Europe and China – did not bring
so much reaction, because the markets had already expected these decisions. Although there is
ambiguity about further rate changes and also some bad news have arisen from Portugal, it seems
that investors have decided to continue to ignore the European negativity. The Russian markets
have stayed in the rather high price levels almost the entire first quarter and many investors have
stopped waiting for the rollback, thus buying has begun again. Oil prices still remain one of the
most determining factors and since last week oil prices increased again due to the complex situation
in Libya, next week’s outlook remains positive as well. Dynamics of the Russian markets will also

2 Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.
Market Overview: Russian Stock Market RTS 2011, wk. 14
depend on the initial results of quarterly financial statements of U.S. companies. No unpleasant
surprises are expected, however, some doubts exist in the market that, eventually, if bad news come
from the U.S., it will be a good excuse to sell, but this is forecasted more for the end of the month.
Still, next week is expected to be positive for Russian stocks again, thus prices moving upwards.

Review by: Laura Laube, Eriks Petrovs, Valerijs Rezvijs, Eduards Sidorovics

3 Market Overview is not an advice. Neither authors nor iFund or other representatives are liable for possible use of information contained in
it. Relatively reliable public information (Exchanges websites, Bloomberg, Reuters, etc) was used to produce this Market Overview.