RTS Stock Exchange Begins Calculating The Second-tier Stock Index

Effective March 31 st , 2005, the RTS Stock Exchange will begin to calculate the Second-tier stock Index – RTS-2. The decision to calculate the new index was made by the RTS Stock Exchange Board of Directors on March 17 th , 2005, at the recommendation of the RTS Information Committee.

RTS-2 will be calculated based on the list of stocks that currently constitute the RTS Index, with the exception of the most liquid and highly capitalized securities. The RTS Information Committee using trading statistics and expert opinion compiles the list of the most liquid and highly capitalized stocks. At present 16 securities comprise that list. RTS-2 Index will be calculated based on 52 securities in the "trade-by-trade" mode.

To analyze the RTS-2 Index, statistics was calculated going back to the beginning of 2004. The RTS-2 initial value was set to 567, 25, the index value as of December 31 st , 2003. In 2004 RTS-2 grew by 30%, RTS Index – by 8.3%. Since the beginning of 2005 RTS-2 index gained 23%, RTS Index – 7.8%.

Click here for details of the methodology of the index calculation.

"One of the major strategic tasks that the RTS Stock Exchange faces is the development of the second-tier stock market. So it is only logical that we decided to start calculating the appropriate benchmark", said Oleg Saphonov, RTS Stock Exchange President.

"We are currently witnessing the increased interest of both Russian and Western investors toward the "second-tier" securities, so having the benchmark "second-tier" index would prove very helpful", added Oleg Shevelev, RTS Information Committee Chairman.