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The dynamics of Russian stock market basic structural indices The MICEX Index started to grow earlier in May and hit for the fi rst me since March values beyond 1720 points at the end of the fi rst week of the month 1. The Index varied around 1700 points in the second week and then saw a gradual downtrend. The Index lost 1.55% while declining in the period between 27 April and 26 May 2015. The Index dynamics were chiefl y governed by the movement of crude oil prices which on 5 March reached for the fi rst me in 2015 values above $67 per barrel, however by 26 May they slid to the value seen in the last month, i.e. down 1.33% from the value seen on 27 April. Almost all of the blue chips showed a small nega ve ROE as of the end of May. Gazprom's shares, a leader in April, dropped lower in May than other blue chips, down 5.61% 2. The cumula ve return on the shares of Sberbank, Lukoil, Rosne and the preferred shares of Surgutne egaz varied around zero during the en re month. The shares of these companies saw a small nega ve ROE, varying within a range of-1% and-5% as of the month-end. Nontypical of the common trends was a posi ve trend for VTB's shares, up more than 35% as of the month-end. This may be a ributed basically to the bank dividend policy 3. The top-3 leaders among highly liquid shares in terms of annual ROE remained the same from the 1 The presented herein data refer to the data on closing of the Exchange. 2 In the period between 27.04.2015 and 26.05.2015. 3 "VTB 24 which owned by VTB, will allot Rb 26,1bn as dividends for 2014. VTB 24's net profi t in 2014 was running at Rb 31,5bn. As of the 2013 year-end, the bank also allo ed Rb 19,7bn as dividends, which was almost the en re net profi t".

increased 6.8% to 1712 points as oil prices fell. Sberbank reported two consecu ve months of return on equity higher than other blue chips. The Moscow Exchnage trade turnover and overall capitaliza on con nued to increase. Russia-focused mutual funds again saw investments ou low following a short break in October. The situa on in the Russian corporate bond market remained complex driven primarily by domes c factors. The key indicators such as the corporate bond market volume and index and the weighted average yield rate of bond issuances (especially in the energy market segment) saw moderately posi ve dynamics. Investors and issuers ac vity remained at the average annual levels. Issuers' defaults on obliga ons to bondholders remained a problem. The dynamics of basic structural indices in the Russian stock market A new period 1 was opened by substan al growth in oil prices; the two oil futures hikes on 28 October and 3 November pushed Brent oil up above $50 per barrel 2 , reaching the highest value in the period under review. A bit later, however, the price began to fall-below $44 by mid-November. The price fell 3.7% during the month despite some stabiliza on by the end of the period under review ($45.58 per barrel as of 26 November). The MICEX Index saw posi ve dynamics for two consecu ve months (October-November). The Index con nued to grow in the second half of November despite the fall in oil prices, reaching as high as 1868 points (23 November) during the period under review. The Index gained 6.8% by the end of November and increased more than 13% in October-November. Sberbank's stock price con nued to grow. Sberbank was reported to deliver return on equity higher than other blue chips, reaching 19.6% in November and more than 40% in October-November. The major hike in quota ons (7% daily) was seen on 17 November. Even LUKOIL managed to deliver monthly ROE more than 10%. Norilsk Nickel was the only high liquidity company 3 whose stock price depreciated during the period under review (down 3.3%). The rest of the companies saw insignifi cant growth by the end of the month.

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