Thus, in the period from March 24 through April 26 the total turnover in the RTS futures and options market made approximately RUR 1,079.58 bln6,497 of transactions, 43.mln contracts) against about RUR 733.44 bln 4,844 of transactions, 29.77 mln of contracts) in March.Like before, futures enjoyed the greatest demand: the volume of trades in the period under review made RUR 1,048.47 billion (6,436.94 thousand of transactions, 40.mln of contracts).Herewith, prices of futures contracts, concluded in RUR/USD futures LUKoil Tatneft Rosneft Bank VTB Russia Gazprom Mosenergo Rostelecom Sberbank of GMK NorNikel Gazprom neft Surgutneftegas FINANCIAL MARKETS in the RTS FORTS for the second quarter of 2009 were within 34-34.8 RUR/USD, for the third quarter – RUR/USD 35-36 and for the fourth quarter within 36-37 RUR/USD.
while the average RTS index in the second quarter was estimated at 620-680 points and within 600-680 points in the third quarter.55.69 of transactions, 1.05 mln of contracts).
The maximum daily turnover in the short-term RTS futures market made RUR 53.29 billion in March (as of March 19), and minimum was RUR 26.44 bln.on March 2). Theredore, investors’ expectations in regard to the growth of the dollar rate over the next six months have declined RUR 2 by on average versus the preceding month. The value of RTS index was assessed for the second quarter mainly in the range of 700-800 points, for the third quarter – at the rate of 700-780 points and for the fourth quarter - at 730-790 points.
Options enjoyed far lower demand; the turnover amounted to about RUR 31.11 bln (60.transactions, 2.49 mln of contracts). The maximum daily turnover in the RTS futures market made RUR 61.94 billion in April (as of April 14), and minimum RUR 24.70 bln. (on April 13).
External factors behind Russian stock market dynamics In April the Russian financial market dynamics, as a month earlier, was dependant on the situation in the world financial markets, characterized mainly by an upgrading trend, urged by optimistic investors’ behavior, based on measures, taken by governments of a number of countries against financial crisis, upgrading oil prices, positive financial performance information, disclosed by some largest global companies, as well as optimistic macroeconomic news from the USA. Among the basic positive factors of the global market situation, affecting the Russian market, one should mention:
• publication of positive macroeconomic news from the United States (in particular on the grown sales of new homes and larger volume of orders for durable goods), as well as a statement Barack Obama, the US President, on the sustainability of the US financial system at the end of March;
• information of British bank Barclays Plc, as well as the German bank Deutsche Bank, that there is no need to attract additional capital;
• implementation of the plan for recovery of the global economy as a result of the summit of «big twenty» (held on April 2), in particular, expansion of control over the activity of hedge funds and the allocation of anti-crisis package amounting to USD 1 trillion by IMF and the World Bank;
• UK Ministry decision to guarantee credit funding to the Royal Bank of Scotland Group and a number of banks to encourage the renewal of credits issuance;
• increased net profit of the US bank Goldman Sachs as of the 1-st quarter of 20082009 fiscal year by 13 per cent to US USD 1.66 billion, as compared with the 1-st quarter of 2007-2008 fiscal year;
• plans of Japan government to extend public expenditures for the suppression of the countrywide crisis ïëàíû;
• global oil price upgrading (over USD 50 per barrel) in the first half of April;
• reduction of the interest rate by the European Central Bank to 1.25 per cent per annum.
However, the following events hindered growth of the global financial markets within the month:
• U.S. government rejection the anti-crisis plans of automobile manufacturers General Motors and Chrysler, and failure to provide them additional financial support, as well dismissal of the General Motors Head;;
• information on the reduction of US banks Bank of America and J.P.Morgan Chase financial performance in March 2009 ;
RUSSIAN ECONOMY: TRENDS AND PERSPECTIVES • information on the net losses of American bank Morgan Stanley in the 1-th quarter of 2009 in the amount of USD 177 million dollars (versus USD 1.41 billion profit a year earlier);
• Bank of China profit reduction in the fourth quarter of the fiscal year by 58 per cent;
• unemployment growth in the USA in March;
• global oil price reduction (lower than USD 50 per barrel) in late March and the first half of April.
All those factors urged the upgrading dynamics in the major global stock market indices.
Herewith, despite the general volatility in global indices, observed in April as compared with the indicators of the beginning of 2009, the indices demonstrated a general growth.
Thus, the market indices of developing countries were characterized by growth (basically by 5-15 per cent), while in the US and European markets those indices were demonstrating lower growth rate by 4-10 per cent (See Table 1 and Fig. 5).
Table DYNAMICS OF THE GLOBAL STOCK INDICES (AS OF APRIL 26, 2009) Dynamics Dynamics Index Ticker Value within the since the year month(%)1 beginning(%)MICEX (Russia) MICEXINDEXCF 922.99 13.21 48.RTS (Russia) RTSI 831.41 15.29 31.Dow Jones Industrial (USA) Average (USA ) DJI 8 076.29 3.86 -7.NASDAQ Composite (USA) NASD 1 694.29 9.65 7.S&P 500 (USA) SPX 866.23 6.16 -4.FTSE 100 (UK) FTSE 4 155.99 6.60 -6.DAX-30 (Germany) DAX 4 674.32 11.20 -2.CAC-40 (France) CAC 3 102.85 9.23 -3.Swiss Market (Switzerland) SSMI 5 113.05 4.94 -7.Nikkei-225 (Japan) NIKKEI 8 707.99 0.94 -1.Bovespa (Brasil) BUSP 46 771.79 11.61 24.IPC (Mexico) IPC 22 582.17 11.16 0.IPSA (Chile) IPSA 2 680.31 5.20 12.Straits Times (Singapore) STI 1 852.85 6.14 5.Seoul Composite (South Korea) KS11 1 354.10 9.42 20.ISE National-100 (Turky) XU100 29 675.55 15.48 10.BSE 30 (India) BSE 11 329.05 12.74 17.Shanghai Composite (China) SSEC 2 448.60 3.12 34.Morgan Stanley Emerging Markets Free Index EFM 516.95 9.40 12.* Versus indices of March 27, Corporate news ÎÀÎ «VTB Bank» In late March – early April, in the framework of support to the Russian regions, VTB Bank has provided credit to the Administration of Tomsk Region in the amount of RUR 1.56 billion for the term up to one year (for the purpose to execute the regional budget expenditure commitments of the social significance) and RUR 700 million to Kostroma Region (to finance the budget deficit), RUR 1 billion Penza Region for up to one year (for funding priority budget expenditures, affecting social stability in the Region), RUR 2.billion to Ryazan Region (to finance the local budget deficit).
FINANCIAL MARKETS 130,0% Dow Jones Industrial Average Moreover, on April 120,0% NASDAQ Composite 6, VTB Bank in the 110,0% The MICEX Index framework of cooperation 100,0% The RTS Index development with the 90,0% retail trade networks has 80,0% allocated credit limit to 70,0% the group of companies 60,0% «Dixy» in the amount of 50,0% RUR 1.5 billion up to one 40,0% year to refinance existing 30,0% debt and to replenish 20,0% working capital. On April 23, in the framework of government support to the automotive industry, Fig. 5. Dynamics of the main USA and Russian stock indices VTB Bank has provided to (in % to the date 01.02.2008) OAO «AvtoVAZ» funding of EUR 4 billion and on April 24 provided credit limit to JSC «Avtopribor» manufacture, amounting to RUR million, valid for 2 years for replenishment of their working capital.
On April 3, VTB Bank has disclosed unconsolidated financial reporting, developed under RAS, for March 2009: the Bank’s assets amounted to RUR 2 723 billion; net profit for the first quarter of 2009 made RUR 1.99 billion (versus RUR 16.8 billion in the first two months of 2009). Reduced profit in March was mainly attributable to increased contributions to the reserves for the risk of losses on loans, as well as the negative estimates of foreign currency rates in view of RUR strengthening against USD.
On April 23, VTB Bank has disclosed unaudited financial reporting, developed in accordance with IFRS for 2008: net profit accounted to USD 212 million, as compared with USD 1.5 billion in 2007, the credit portfolio has been extended by 50.3 per cent to USD 90.2 billion.
In addition, on April 7, VTB Bank has purchased from AFK «System» shares of JSC «Sistema-Gals», constituting 19.5 per cent of the authorized capital, valued RUR 30 rubles each and received a call-option to purchase shares for 30 per share, from JSC «Gals Finance», constituting 31.5 per cent of the authorized capital of JSC «Sistema-Gals». VTB Bank will be entitled to use the option upon approval of regulatory authorities. In case of the option utilization, VTB Bank share in the authorized capital of «Sistema-Gals» will amount to 51per cent. JSC Sistema will be the owner of about 20 per cent of the shares of the company. At the same time, the parties have agreed the terms of restructuring the debts of «Sistema-Gals».
ÎÀÎ «Gazprom» On April 7, OAO «Gazprom» has the option to acquire 20 per cent of shares in OAO «Gazprom Neft». As a result of the agreement, «Gazprom» share in OAO «Gazprom Neft» has reached 95.68 per cent. The transaction value amounted to about USD 4.1 billion (to finance the transaction, «Gazprom» has attracted a number of credits from the Russian banks).
ÎÀÎ «Gazprom Neft» On April 15, OAO «Gazprom Neft» has disclosed the consolidated financial reporting for the 2008 under the US GAAP standars: revenues increased by 52 per cent to USD 33 01.02.19.02.07.03.26.03.11.04.29.04.15.05.02.06.18.06.04.07.22.07.07.08.25.08.10.09.26.09.14.10.126.96.36.199.02.12.18.12.13.01.29.01.16.02.05.03.23.03.08.04.24.04.RUSSIAN ECONOMY: TRENDS AND PERSPECTIVES million (USD 21,767 million in 2007), net profit has grown by 12 per cent to USD 4 658 million (against 4,143 million in 2007); EBITDA amounted to USD 7 965 million, as compared with USD 6, 236 million in 2007 (+28 per cent).
On April 21, OAO «Gazprom Neft» has placed an inaugural issue with a ten-year yield to redemption, series 04, with the total nominal value of RUR 10 billion (organized by the OAO «Gazprombank» and OOO «Renaissance Capital - Financial Consultant»; the emitter agent was GPB OAO). The coupon value was 16.70 per cent per annum for the term of days.
On April 22, OAO «Gazprom Neft» has purchased in Italy a production plant for oils and lubricants (Chevron Italia S.p.A in Barry). On April 22, OAO «Gazprom Neft» has started start to sell oil products in St. Petersburg International Commodities and Raw Materials Stock Exchange. In future it is planned to provide petroleum products for sale on a regular basis.
In addition, on April 23, OAO «Gazprom Neft» has acquired a minority package in Sibir Energy. The purchase is made at a price of 500 pence per share. After completion of the transaction, OAO «Gazprom Neft» will consolidate over 16 per cent share in Sibir Energy.
ÎÀÎ «LUKOIL» On April 7, OAO «LUKOIL» has disclosed consolidated financial reporting for the under US GAAP standards: net profit has decreased by 3.9 per cent and amounted to USD 9 144 million, EBITDA has grown by 1.1 per cent and amounted to USD 15 552 million.
On April 16, OAO «LUKOIL» has early repaid credit in the amount of Euro 400 million from their own funds. The credit was attracted in November 2008 under the guarantee of OAO «LUKOIL» to partially finance the acquisition of 49 per cent shares in the ISAB refinery complex (Priolo, Sicily, Italy).
On April 20, OAO «LUKOIL» and OAO «AvtoVAZ» have signed the agreement on technical cooperation and partnership between the companies in 2009-2012. The agreement, in particular, provided, that OAO «AvtoVAZ» will purchase oil products, lubricants and special liquids, produced by OAO «LUKOIL» at the price, estimated as per market indices.
ÍÊ «Rosneft» On March 31, NK «Rosneft», and the Ministry of Transport of the Russian Federation have entered into two agreements on cooperation. The first agreement provides for cooperation aimed at improving the road facilities and development of road service. The second agreement covers cooperation in regard to civil aviation fuel.
On April 10, NK «Rosneft» and AK «Transneft» have signed a bilateral agreement on oil supplies to China in order to implement the Agreement between the Government of the Russian Federation and the Chinese Government on cooperation in the oil industry.
Also on 10 April NK «Rosneft» has early repaid from its own funds a credit in the amount of USD 577 million raised in the 4-th quarter of 2008 from Vnesheconombank.
ÎÀÎ «Rostelecom» On April 2, OAO «Rostelecom» has disclosed audited reporting for 2008 as per the RAS: revenues amounted to RUR 63,201.7 million.; net profit made RUR 7,072.0 million; OIBDA (revenues less expenses on regular activities without accounting for depreciation), compared with 2007 has increased by 19.7 per cent to RUR 14,312.8 million, profitability as per OIBDA made 22.6 per cent.
On April 21, the Board of Directors of OAO «Rostelecom» has advised on dividends for 2008: on the preferred shares - RUR 2.9124 per share, on the ordinary shares - RUR 1.FINANCIAL MARKETS per share. The total amount of dividend payments OAO «Rostelecom» for 2008 amounted to RUR 2 121.6 million (or 30 per cent of net profit).
«Sberbank of Russia» On March 27 «Sberbank of Russia», in the framework of General Agreement on the opening of a revolving credit line, sined on October 31, 2007 has provided a credit to OAO «AK «Transneft» for about RUR 12,894 million. Credit funds are allocated for construction of the pipeline system «East Siberia - Pacific Ocean», which is designed for transporting oil from Siberian oil fields to a promising market in the Asia-Pacific region.
Also on March 27, «Sberbank of Russia», OOO «Sberbank Capital» and the Capital Group have informed they have signed agreements for restructure the loan of Capital Group, totaling over USD 400 million.
On March 30, «Sberbank of Russia» has signed a credit agreement with FGUP «M.V.
Khrunichev GKNPTS» on the opening of non-revolving credit line to get the government subsidy.
On April 21, «Sberbank of Russia» started to provide minor credits to small businesses. A minor credit is provided up to RUR 1 million for up to two years under the security of an individual - the owner of the business, and the term for making the decision on credit granting is reduced to two days.