Forecasts of the 20 most attractive stocks for investments were made before the sad events of plunge of world stock markets that also influenced the Russian stock market. The wave of sales changed much, but markets of the developing countries are still more attractive. Forecasts for the Russian companies remain relevant and their growth will possibly be higher than predicted before. Russia did not suffer directly from a mortgage crisis in the USA; the indirect influence is rendered by deceleration of world economy. Plunge of the Russian stock market was predetermined by external factors. There is no negative within Russia. Some analysts have already hastened to predict good growth in 2008 relying upon such factors as political stability in Russia and high enough oil prices.

The Russian market continues to look far better than most indices of the developed and developing countries. The American and European indices closed in the easy hole for a week December, 17-21, and most markets of BRIC, except Russia, fell down by 1 - 3%.

The stockholders invested $1,6 bln. in funds according to the results of raisings into the open mutual funds in 2006. In 2006 total investments into all types of open funds have increased by 4,7 times in comparison with 2005 and totaled RUR42,2 bln. Among the open mutual funds leaders are the stock funds that attracted RUR23,5 bln. ($940 mln.). In comparison with 2005 the attraction volume into stock funds is 11,5 times more. Index funds and mixed investments mutual funds were no less popular among the investors that attracted RUR3,1 bln. and RUR12,6 bln. accordingly in the last year, that is eight times more than the results of 2005. But the fashion for conservative strategy passes away. The investors invested RUR2,5 bln in mutual funds’ bonds, that is 1,7 times less than according to the results of the last year.

The proper bill draft is introduced to the deputies of the State Duma. All regulatory enactments, that allow the act to begin work quickly, are already prepared. The bill draft has high chances to receive an approval of the Russian members of the parliament. Prepared by the FFMS it already passed reconciliation with the Ministry of Finance, Ministry of Economic Development and Trade (MEDT) and the Central Bank. Probably, the act will start acting in the middle of the next year. The entry of foreign investors can increase the volume of the Russian market by 10% in the nearest two years, experts are sure. “And first companies that will appear here are related to the local market”, says Alexander Krapivko, the senior portfolio manager of Renaissance Investment Management. “They are Danon and Strabag Construction Company etc. Those, who work on the Russian market will be presented more, those, who are not, won’t enter at all! It would be convenient for the Russian institutional investors to buy these stocks, instead of doing something to buy these securities on the NYSE, for example”.

On the largest Russian stock exchange, trading derivatives, – on the FORTS market - can be introduced the round-the-clock futures trading on RTS index. This contract is the most liquid instrument at the derivative market, and shifting to the round-the-clock trade is actual for the investors, experts consider. Starting a project, RTS tries to fix the positions on the stock market.

Actuality February, 28, 2007. The daily sales at MICEX totaled RUR161,64 billions that was a historical maximum during the lifetime of the market, as it was reported by the exchange press service. So, according to the results of the auctions at MICEX on February, 27th, 2006, the volume of transactions totaled RUR161,64 billions ($6,18 billions), including the main auctions – RUR80,9 billions ($3,23 billions), negotiation bargains – RUR 3,3 billions ($532 millions), REPO – RUR63,8 billions ($2,55 billions), and placement – RUR 3,6 billions ($144 millions). At the same time the volume of stock bargains (without REPO) totaled RUR 80,1 billions ($3,2 billions), of bond bargains (without REPO and placement) – RUR 14,1 billions ($564 millions), of REPO bargains – RUR 41,5 billions ($1,66 billions) and RUR 22,3 billions ($892 billions) with stocks and bonds respectively.

Actuality October, 2007. By the end of 2006 the stock market of Russia not only got back the summer slump, but also it established a new record: the most popular indicator of domestic stock market — RTS index —went above the level of 1870 points. For this year the index has grown by 60 %. The polled experts doubt, that in 2007 the stock market will demonstrate the same high rates of growth. In their undivided opinion, at favorable conditions the share index can rise approximately by 30 % up to 2400 points by the end of 2007, and if the economic situation isn’t favorable, the market can go down to 1500 points.

Company name and symbol at the Russian RTSE stock market

RAO UES – EESR, EESRP
Gazprom - GAZP
Rostelecom - RTKM, RTKMP
MMC Norilsk Nickel - GMKN
Savings Bank (Sberbank) – SBER, SBERP
Lukoil - LKOH

Brief description of companies

As predicted by Citigroup, in 2007 the volume of IPO of the Russian companies will make 18,096 billion dollars that is almost 2 billion dollars less than outcomes of 2006. However, the main share in the volume of offering of 2007 will not fell to the lot of raw material sector. According to the Citigroup estimations, approximately 10 billion dollars of IPO will be got by Foreign Trade Bank, Saving Bank and ОGK-9. The completion of several recent IPO sensified the experts of Citigroup to feel the stability of the Russian economics. « If the volume of IPO is comparable to the results of 2006, it will carry more conviction of reliability of the Russian investments», as it is said in Citigroup researches.

During the week finished on October, 10, 2007, foreign investors inlaid a record volume of means to the Russian stock market - $140 million. Analytics wait for the further increase of investments that is promoted by stabilization of the world financial market and rise of political certainty in Russia. Underestimation of the Russian market in comparison with other emerging markets makes it be one of the most attractive.