A' Potemkin

1
Russian stock markets SWOT analysis Moscows
viewpoint

• A. Potemkin
• MICEX, President

2
What makes the Russian stock market grow?
3
What makes the exchanges market grow?
4
Issuers stale bread or hot cakes?
5
Second tier equities goods in stock

• For what purposes do you recommend to buy the
  second tier equities?
• As long term investments with a positive outlook
  90
• How fair are the market prices of the second tier
  equities?
• The market prices are lower than fair prices
  75
• Based on the MICEX April 2007 survey,
  respondents are analysts of investment companies
  and banks

6
Last 15 Months Post IPO

• source Tracey Pierce, Head of Global Business
  Development at the London Stock Exchange

7
Coming soon
8
Investors in the Russian market who are they?
Clients of mutual funds 7.0
Dealers trades 14.2
Non-residents27.7
Russian individuals23.8
Russian legal entities27.3
9
Does the foreign capital have a citizenship?
Investors-non-residents on the MICEX SE in 1Q
2007Turnover in mln USD and number of
participants
10
How many indices doesthe Russian stock market
need?
Market in 2006
RTS
DJ Titans Russia
MICEX Index
MSCI Russia
RTX
FTSE Russia IOB Index
DAXglobal Russia
10
11
Structure of trades by economy sectors
12
Reserve list selection criteria
Equities admitted to trading on the exchange
???-100 100 most capitalized equities
???-60 60 most traded equities
30 equities in current index not more than 3
equities from an economy sector (not more than 9
equities from a sector including current
portfolio) free-float gt 5 common or privileged
equities of an issuer if an issuer has equities
of any type in an index portfolio, the equities
of another type are not included
Selection criteria
Reserve list (10 sectors)
13
Index portfolio starting April 15, 2007
Index portfolio till 15 April (21 equities)
Current index portfolio (30 equities)
14
Index family structure
MICEX Index
10 Large Caps
MICEX OG
MICEX TLC
30 Middle Caps
MICEX PWR
50 Small Caps
Metals Mining
Consumer
Manufacturing
15
Infrastructure development prospectswhat should
be done first?

• Central Depository
• Promotes OTC development
• Creates customary environment for non-residents
• Offers securities owners rights protection
• Increases stock market transparency

?

• Centralized clearing (CCP)
• Lowers the participants costs
• Increases stock market liquidity
• Creates customary environment for non-residents

16
Contacts

• www.micex.ru
• info_at_micex.com
• 7 495 234-48-11
• 13, B. Kislovskiy per., Moscow, 125009, Russia