The volume of secondary trades in stocks grew by 60%: from 555,9 billion rubles (17,9 billion dollars) in the first six months of 2002 to 907,6 billion rubles (29,2 billion dollars) in the first six months of 2003. The following issuers' stocks were traded most actively: RAO UES, Surgutneftegaz, LUKoil, Mosenergo and Rostelekom.
In the first six months of 2003, the volume of secondary trades in corporate, subfederal (regional) and municipal bonds and the volume of their primary placement grew 4,3-fold and 2,7-fold correspondingly over the same period of 2002, amounting to 157,2 billion rubles (5,0 billion dollars) and 54,7 billion rubles (1,8 billion dollars). The most liquid corporate bonds were those issued by Gazprom, ALROSA, RAO UES, TNK and Moscow Government. In the first six months of 2003, 54 issuers entered the market (in the same period of 2002 - 26).
On the market of REPO operations in non-government securities, the trading volume grew 14-fold, reaching 144,8 billion rubles (4,65 billion dollars). This is explained by the fact that the market was launched in March 2002, and REPO transactions in these instruments had not been made before.
The growth of the market liquidity was accompanied by the rapid growth of quotations of Russian securities.
In the first six months, the MICEX Index surpassed the mark of 450 points (on 30 July the Index value was 455,44 points), showing a 40% plus growth (1 January 2003 - 318,91 points). Leaders in growth were: Mosenergo (common stock), RBK IS (preference stock), RAO UES (preference stock), RAO UES (common stock) and Sberbank (preference stock).
The cost of borrowings on the corporate bonds market went down, amounting on average to 4-6 interest rate points. In the middle of 2002, the rate of return was on average 17-20% of yearly interest, while today the rates of return have gone down to 12-15% of yearly interest.
A number of factors brought about the growth of the market.
Internal factors:
- relatively high economic growth (6-6,5%, which exceeds the level of practically all developed economies);
- the consolidation of the exchange rate of the ruble (by about 3% for the nominal exchange rate);
- the decrease of the inflation (to 12-13% a year);
- the growth of the gold and currency reserves (to 65 billion dollars) and the increase of the country's paying capacity.
- favorable conditions for the country's foreign trade: for 6 months the average price for Brent exceeded 28 dollars/barrel;
- the rapid growth of foreign indexes (DJIA grew by about 15%, NASDAQ - by 20%, West European indexes - by about 15-25% (on average);
- favorable psychological environment: investors expected Russia to soon receive an investment credit rating.
