The Russian equities market: monthly trading activities roundup
The Russian equities market displayed strong positive growth in May, as its major performances indicators, notably, the RTS and MICEX indices, which track the activities of the Russian blue-chips’ equities — crossed the psychological landmark of 1,000 points, the first time since the global crisis decapitated the local economy and its stocks market by over 75% in 2008.
Specifically, the U.S.-dollar, denominated RTS-1 Index ended the month at record high 1,087 on May 29, up from 831.41 at the end of April, while the MICEX Index pegged at 1,123.34, also a record for the ruble-denominated exchange.
The local equities market was mainly boosted by good domestic and international business news, especially from the energy markets, where oil prices hit over $65/barrel, now also a new price yardstick. These positive tendencies led to significant increases in the values of shares of top companies that form the backbone of the Russian economy, namely, Sberbank, whose shares rose 24.03%, Gazprom (+11.13%) and LUKoil (+8.06).
The forex rate volatilities remained unchecked in May, as the ruble continued its strong appreciation against other major global currencies, closing the month below R31/USD, at R30.97/USD, and a litter over R43/euro, on May 29. However, the Central Bank’s announcement that it would no longer actively support ruble’s further appreciation means that the forex volatilities — which have been ravaging the local forex market since the Russian government sent the ruble into a ‘free fall’ in late 2008 — are now coming to an end.
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