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%.

JSC TransContainer business, the largest Russia’s container railway operator, is rather attractive for investors, therefore they will be interested in the company initial public offering (IPO). Such was the opinion of Troika Dialog analyst Kirill Kazanli, who commented the decision of JSC Russian Railways (RZD) directors’ board to hold TransContainer IPO in October current year.

Russia’s Internet business already reached a certain level and became attractive from the investment viewpoint. In particular, this proves investment policy of Alisher Usmanov, who demonstrates high activity towards net projects this summer.

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

In the first half-year 2008 Surgutneftegaz net income grew by 85% by RAS standards (Russian Accounting Standards) as compared to analogical period 2007 and reached RUR 72,7 billion. Some analysts suppose that the company stocks can go up 1,5 times within the nearest months. In 1Q 2008 the company net income totaled RUR 19,5 billion and grew 2,4 times as compared to analogical period last year. In 2Q this index reached RUR 53,2 billion.

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.

In June five largest Russian banks demonstrated the biggest slowdown of assets growth since early year. Gazprombank that decreased volume of facilities placement at the interbank lending market, and Bank of Moscow that reduced corporate credit portfolio provided this fall. At the same time, assets of mid-seized banks that had received access to relatively inexpensive foreign loans in 2Q demonstrated marked growth.

According to Rosstat data for June (Federal State Statistics Service), industrial production index for the first 6 months of 2008 totaled 105,8% as compared to the analogical period last year – 100,9. In July was expected production rates’ reduction; however, assessment of June to corresponding month last year was overall surprising. Analysts consent that the reason of such low growth assessment of industrial production in June is practical peculiarities of economic measuring and its adjustments used by Rosstat.

First foreign fund with the Russian stock exchange index appears before long. Japan’s investment bank Nomura has registered a fund with index of RTS stock exchange (Russian Trading System). In market participants’ opinion, foreign investors are interested in the Russian index in terms of quotations growth’s prospects of the energy sector companies foremost, as RTS index lists their stocks mainly.