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Effective December 18, 2006 OJSC Russian Trading System" Stock Exchange starts publishing five RTS Sectoral Indices, which are calculated in the in real-time mode:
RTSog: RTS Index – Oil and Gas
RTScr: RTS Index – Consumer goods and retail trade
RTSmm: RTS Index – Metals and Mining
RTSin: RTS Index – Industry
RTStl: RTS Index – Telecommunications
RTS Sectoral Indices in the real-time mode started on December 15, 2006 according to the OJSC RTS Board of directors' decision dating from December 14, 2006 and a record calculation of the indices has taken place since January 11, 2005, when the value of all indices made 100 units.
The method of calculating RTS Sectoral Indices is based on the method of calculating RTS Index, however, with some peculiarities:
- Sectoral Index includes the shares of those enterprises that relate to the definite segment of economics,
- The weight of the shares of one company is limited by 25%,
- The number of shares in the Indices makes from 10 to15,
- The original list of securities is the list of the securities that are included into"RTS Index" and "RTS Index-2".
The development of the Sectoral Indices and formation of the lists have been carried out with due account for requirements of FFMS of Russia, that are necessary to be met for the indices used for creation of index mutual investment funds and also for the indices that are the basic assets of the futures contract.
"Having set about calculating the Sectoral Indices, "The Russian Trading System" has offered the investment society a number of new instruments that allow to perform various strategies of investing on the stock market", noticed OJSC RTS CEO Oleg Safonov. In his opinion the Sectoral Indices will fill in the gaps of certain segments of indicators economics. "By offering new indices we hope to satisfy the need in such indicators of the managing companies, participants of the derivatives' market, investors and analysts. Cooperation with the company Standard & Poor's, an acknowledged leader in the market of indices products, gives us an opportunity to apply in our work the leading world experience. Our plans include not only the indices calculation, but the launch of trading on futures contracts on sectoral indices", pointed he out.
"The new RTS Indices are a timely response to the growing needs of domestic and foreign investors in diversifying indicators on the Russian market. They have become a logical continuation of the S&P and RTS's cooperation in the indices' segment. We are happy that in the process of their development both analytical knowledge and S&P's experience in the sphere of creating industry indices have been used", noted Director of the Index service business development of Standard&Poor Yuriy Morozov.
The First Vice-president of the RTS Stock Exchange Roman Goryunov said that the appearance of sectoral indices and the following launch of derivatives on them will promote the further development of the derivatives market. "The market participants will have new opportunities both for hedging risks in operations on various contracts and widening the investment strategies. It will allow formation of liquidity on re-created instruments and will raise the volumes in the existing ones", supposes Roman Goryunov.
More detailed information on Sectoral Indices can be found here: http://www.rts.ru/en/index/sectoral.html.
