FINANCIAL MARKET IN AUGUST 2014

In August 2014, the MICEX Index, after having risen to 1,460 points as of 21 August, over the next few days dropped by 4.1%, standing as of 29 August at 1,400.7 points. The MICEX’s capitalization as of 29 August amounted to Rb 22.4 trillion (or 34.6% of GDP). In August, the main negative factor on Russia’s domestic corporate bond market was the surge of the weighted average effective yield on corporate bond issues that triggered the downward movement of the corporate bond portfolio duration index and waning investor primary and secondary bidding activity. Nevertheless, August also saw some positive trends displayed by key market indicators, such as the market volume and the marker index, as well as issuer activity with regard to registration of new securities issues. Besides, bond issuers were better fulfi lling their obligations to bondholders..