11.01.2010 – 15.01.2010
The first week of the year 2010 was very positive for Russian stock indices. According to the week results the RTS and MICEX indices increased by 7.9% and 6.0% respectively relative to their values as of December 31, 2009. During this period stock indices showed multidirectional dynamics at world stock exchanges:    Dow Jones (+1.7%), S&P500 (+1.9%), DAX (-1.4%), Shanghai Composite (-1.6%), Nikkei225 (+4.1%). The Brent oil futures price greatly increased and underwent correction for the last 2 weeks; its change was -1.0% from the end of 2009. The gold price, on the contrary, increased by 3.25%.

According to the last week results European stock indices decreased against the background of relatively good macroeconomic data. The industrial production volume in Eurozone increased in November by 1% whereas the market had expected it to increase by 0.6%. Year-on-year the industrial production volume in Eurozone fell in November by 7.1%. The ECB decided on Thursday to keep the main key rate at 1% per annum. In his comments on this decision J.C. Trichet, Head of the ECB, stated that in 2010 Eurozone economy would grow at a moderate pace but irregularly since factors for supporting real GDP growth are temporary. Besides, J.C. Trichet stated that they would gradually give up previous emergency measures of increasing liquidity and these measures were now not so necessary as they had been previously.

Last week American stock indices decreased against the background of poor macroeconomic data. The number of applications for unemployment benefits in the USA increased for the last week up to 444 tnd., whereas the market had expected it to be 437 tnd. The retail sales volume in the USA decreased by 0.3% in December, whereas the market had expected it to increase by 0.5%. Increase in consumer prices in the USA amounted to 0.1% in December in comparison to November, and price growth for the year was 2.7%. In December all the elements of the consumer price index in the USA showed growth, and the foodstuff price index increased in December 2009 reaching the maximum level of 0.2% for more than a year. In 2009 the main factor of inflation acceleration in the USA was increase in the utilities price index by 18.2% in comparison to 0.1% in 2008.

The best shares last week were those of the power industry and metallurgy sectors. The worst were consumer sector shares. The growth leaders for the week were shares of Severstal (+37.5%), VSMPO-Avisma (+23.8%), and OGK-5 (+13.6%).   
Aruji Asset Management Ltd.