25.01.2010 – 29.01.2010
Correction on the Russian stock market went on. According to the last week results it can be summed up that investors took assets practically from all financial instruments. The RTS and MICEX indices closed the last week in a multidirectional way and changed by -1.3% and 0.6% respectively relative to their closing in the previous week. The Brent oil futures price dropped by 1.5%. The gold price also went on undergoing correction – a change was -1.0%. Negative dynamics was still observed at world stock exchanges: Dow Jones (-1,0%), S&P500 (-1,6%), DAX (-1,5%), Shanghai Composite (-4,4%), Nikkei225 (-3,7%). As far as RTS dynamics is concerned, we foresee some slight drop now, though, in one or two months we can reliably speak of renewal by the Russian RTS of this year’s maxima.
European stock indices decreased last week against escalated problems in Europe. According to Fitch information Governments of the West Europe countries will involve from credit market a record sum of €2.2 trn. in 2010 in order to cover the deficits of their national budgets, which were incurred by them because of state support of their economies. The following countries have the greatest indebtedness in 2010: France (€454 mld.), Italy (€393 mld.), Germany (€386 mld.) and Great Britain (€279 mld.). Investors became more pessimistic because of the S&P agency statement that Great Britain is no more included in the number of countries having the most stable banking systems in the world. For the British shaky economy continues to have a negative effect on the banking sphere, and debt load will have a negative impact on economic growth prospects and banks’ financial indices.
According to the week results American indices of the US equity market dropped. Last week the US FRS quite optimistically spoke of the state of the US economy promising to keep the key rate at a low level until a steady economic upturn is observed. At that, according to the FRS, economic growth in the USA will be moderate for some time. The FRS also stated that it was going to reduce crisis-proof crediting programs by the 1st of February and to finish by the end of March the program of securities purchase, connected with mortgage credits, in the amount of $1.4 trn. According to the released data, the US GDP increased in the 4th quarter 2009 by 5.7%, which was a maximum increase of this index for 6 years. However, this was caused not by growth of consumer demand but decrease in stockholding rate reduction.
The best shares last week were those of the power industry and telecommunication sectors. The worst were metallurgy sector shares. The growth leaders for the week were shares of MRSK North Caucasus (+36.7%), MOESK (+18.2%) and Rostelecom (+11.0%).   
Aruji Asset Management Ltd.