JSC RusHydro’s stocks are listed in indices’ calculation of the agency Morgan Stanley Capital International (MSCI) Barra. Analysts forecast the mass demand for these securities from the part of the western investment funds and their quotations’ growth as well.

Official statement about cease-fire in the Georgia-Ossetia conflict zone caused 2,63-3,49% growth of the Russian stock indices. However, analysts don’t speak about the steady market recovery that has fallen more than 30% within one and a half month. Currently, only speculators are operating on stock exchanges, and long-term investors reassess risks of the Russian securities.

Uralkali, Russia’s potash producer, can spend around 70% of the company net income by RAS standards (Russian Accounting Standards) to pay dividends for 1H 2008. The company does not have any large projects for the nearest four years, so by 2012 stockholders can expect high payments, while the core rivals reduce dividends for capital investments. According to the year results, Uralkali dividends can total almost RUR 20 billion.

The largest French banking group - BNP Paribas - purchases the Russian group of companies - AntantaPioglobal. The deal size can attain $70 million. However, the French have to spend more, as development of AntantaPioglobal retail business requires serious costs, experts forecast.

Situation in the Georgian and Ossetian conflict zone has continued and worsened during the weekend, and the Russian stock market participants have given up hopes for recovery in the nearest future. In terms, when all Russia’s news push all Russian indices down, and all leading western markets grow, analysts do not give forecasts even for the short-term prospect

In the nearest future China’s issuers will get an opportunity to place their securities at Russia’s market directly. In addition, People’s Republic of China will place its gold and currency reserves in Russia as well. It becomes possible due to a memorandum about information exchange Russia’s Federal Financial Markets Service and China’s Commission for securities regulation have signed

On the background of prices drop on primary markets, on August, 5 took place quotations fall on the stock floors. According to the day results, stock exchange indicators of MICEX (Moscow Interbank Currency Exchange) and RTS (Russian Trading System) lost 3,7% and 4,4% respectively. Fall at the Russian market continues 11 weeks already. As experts mark, they have not observed such long drop since 2004, when the state had made tax claims that resulted in Yukos bankruptcy.

On July 24, 2008 Vladimir Putin criticized Mechel Company, and next day it resulted in quotations fall of the Russian stocks. This was the reason to draw the rating of the Russian stock market’s worst days. Since 2000 beginning RTS (Russian Trading System) index has been falling 34 times by 5% and more within one trading session. On July, 24 market fall on the trading session totaled 5,58%. However, this day cannot take its place in Top 10 of Russia’s “black Mondays”, as in order to get to this rating, an index should lose more than 7%.

Review Russian markets: currency market, bond market, equity market, Mutual funds, markets statistics.

Last week was unsuccessful for the Russian stock market. Indices have demonstrated considerable fall. For instance, MICEX index (Moscow Interbank Currency Exchange) went down below 1500 points level, thus an attempt to exceed this mark was unsuccessful. From the technical point of view, this demonstrates the market weakness and probable further drop.