Updated August 14, 2008

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.

RusHydro’s stocks are among the three major securities by the adding to MSCI Emerging Market Index along with the stocks of the Chinese China Yurun Food Group and the South Korean S1 Corporation. The Russian company’s securities are listed in the calculation of MSCI Global Value and Growth Indices as well.

"The fact the company’s securities have been listed in the calculation of MSCI’s indices, means the international recognition of the company foremost, and that will attract attention of the large western funds. The market will take account of this news for some time, and RusHydro will attract considerable facilities of the foreign inventors in the future. Moreover, the company reporting for 1H 2008 by RAS standards (Russian Accounting Standards) has favorably influenced on the image and securities’ quotations. The holding net income totaled RUR 7,95 billion, and that is 40% more as compared to the analogical period of the last year", Alora Company analyst Anna Lyukanova says. In the meantime, the company declared that it would direct no less than 5% from its net income to pay dividends.

"This event becomes a signal for the western funds to purchase RusHydro’s stocks in proportion to the company’s significance in the calculated index, and that will result in the further demand increase for stocks among the foreign investors foremost. The company is very attractive from the fundamental viewpoint, and the drop of securities’ quotations lately is related to the mass revenue fixation on stocks after the reorganization of RAO UES of Russia, as well as the overall negative situation at the market", Metropol Company analyst Mikhail Manasyan supposes.

Since the trades’ opening on MICEX (Moscow Interbank Currency Exchnage), RusHydro’s quotations grew more than 9,5%. By 13.20 Moscow time, their growth totaled 8,2%.

RusHydro (former name – HydroOGK) occupies about 15% of Russia’s energy market. In January, 2008 the company has finished the consolidation of its hydro-generating assets by means of its subsidiaries’ incorporation. In July, the company finished forming the target model by means of incorporation of Irganaiskaya HPP, Cascade of Nizhne-Cherkessian HPP and two "technical" holdings excluded from RAO UES of Russia.