RTS and MICEX indices have become an integral parthistory of the Russian economy. They allow you to determine the mood prevailing in the stock market of the country. The values of these indicators, broadcast in real time by the Moscow Exchange, attract everyone's attention.
The general concept of a stock index
Investors, financial analysts and portfoliomanagers need a simple and clear indicator that assesses the current state of the stock market. As such an indicator stock indexes are used. They are calculated based on the quotes of a certain group of securities. The composition of stock indexes usually include the most liquid stocks, placed on stock exchanges by large and influential companies. The values of these indicators give an idea of the general state of financial markets and national economies. The first ever stock index was developed in the USA at the end of the 19th century. Its name is known even to people far from the economy. The famous Dow Jones index includes shares of 30 largest American companies. Nowadays, the S & P news agency continues to calculate and publish its value.
History of Moscow Exchange
The first in Russia stock exchanges were created inearly 90s. The largest organizers of trading were the two exchanges, known by the abbreviations MICEX and RTS. They developed in parallel. MICEX (Moscow Interbank Currency Exchange), in addition to activities directly arising from its name, has become the largest stock market operator in the country. RTS (Russian trading system) has become the leader in terms of the volume of derivative financial instruments (futures and options contracts).
As a result of the merger in 2011,The two largest sites formed a single holding company, called the Moscow Exchange. RTS and MICEX stock indexes are the main indicators of the domestic stock market. Moscow Exchange organizes trading according to the principle of automatic data quotes without an artificially established difference between the prices of supply and demand.
Description
RTS and MICEX indices reflect in general termscapitalization of the Russian stock market. In other words, they give an idea of how much money investors are pricing in free float liquid stocks. The RTS and MICEX indices have a number of differences. First, they are calculated in different currencies. The value of the RTS index is expressed in US dollars. One base point is $ 2. The MICEX index is calculated in Russian currency. One base point is 100 rubles. The second difference is in the list of issuers (companies that have placed their securities on the stock exchange). RTS is considered the so-called broad market index. This means that it includes the maximum number of issuers representing all sectors of the economy. Representativeness has its drawbacks: the list of the RTS index includes 50 stocks, about 50% of them are almost illiquid. MICEX Exchange chose the so-called blue chips (the largest, most reliable and stable companies). Her "basket" consists of 30 issuers. The dynamics of the MICEX index reflects the volatility of securities of leading companies in the energy and banking sectors. It is worth noting that in the Russian market no more than ten shares can be classified as highly liquid. RTS and MICEX indices are calculated every second during a trading session. Lists of issuers are reviewed every quarter.
Dynamics
Взлёты и падения российской экономики отражаются on the stock exchanges RTS and MICEX. Indices and quotes reached their lowest levels in times of brutal crises. Periods of economic growth led to surges of optimism in the securities market and the establishment of new historical highs.
