At the beginning of the reporting period correction of the market continued amid  deteriorating news. The main European stock indicators and the common European currency suffered losses because of the events around Greece after the EU leaders during the summit refused to discuss a write-off option in relation to Greece’s debts. As a result, МICEX Index dropped 0.8% during the major trading session. The key stock indices in the USA closed the trading session with a slight decline: DJI lost 0.05%, the technological sector index Nasdaq dropped 0.16%, and the broad market index S&P500 dipped 0.25%.

The stock market closed January on a positive note due to an improving external situation. The improvement was seen in growing key European stock indices and in climbing global prices on crude oil. As far as the results of the major trading session on Tuesday are concerned, MICEX Index added 1.2%. Stocks of the metallurgical sector and the banking sector became favorites of the Russian stock market in January. The key stock indices in the USA closed the trading session on Tuesday mixed, with insignificant changes. The oil and gas sector was rated as an outsider in the U.S. stock market after its index dropped 0.85%.

On Wednesday, МICEX Index went up 1.7%. The key stock indices in Europe and the USA closed the trading day by going up between 0.6% and 2.8% on the news that the business activity increased in the industrial sector in China, Britain, and USA. The pace of a slowdown in industrial activities in the eurozone in January 2012 turned out considerably less than predicted. This news eased investors’ concerns about the scale of the economic decline in Europe. S&P500 went up 0.9%.

The Russian stock market stayed bullish on Thursday. МICEX Index added 0.2%. Upon Prime Minister of the Russian Federation V. Putin’s assignment, VTB announced that it is looking into buying back shares from minority shareholders that they purchased by IPO in May 2007. At that point the shares were priced at 13.6 kopeks per share, almost the double of the current prices. The key stock indices in Europe and the USA closed Thursday trading mainly with slight growth after the speech delivered by the head of the Federal Reserve Ben Bernanke. Having mentioned that the economic situation is improving, Bernanke stated it is still quite vulnerable. S&P500 added 0.1%.

The European and American stock exchanges closed the trading session on Friday with growth of the key indices between 1.0% and 1.8%, driven by positive U.S. macroeconomic statistics. According to the released statistics, unemployment in the USA in January of 2012 unexpectedly dropped to 8.3%, the lowest level over the last two years. The non-farm payroll employment rose by 243,000 in January.

Alexey Popov
Head of Securities Division
for Customer Operations