The Russian stock market grew 88 percent in 2005, setting a new world record which is impressive performance. In Europe, significant growth was seen in the Polish and Hungarian markets, in Latin America it was the Argentine and Brazilian markets, and in Asia - the South Korean market, which climbed 54 percent. Russia’s gold and foreign currency reserves amounted to 2 billion in 2005, and the Stabilization Fund also increased significantly.

 

Russian stock market continued to rise on 27 January 2006, the benchmark RTS index edging up 2.65 points to 1,373.22 which is the absolute record. The analysts said the RTS index would climb above 1,500 points. However, the rally will be followed by a correction due to a significant increase in the supply of stocks as a result of IPOs, bringing the RTS to 1,350 points by the end of this year. Experts say the Putin administration is doing all it can to avoid actions that could exert a negative influence on the country’s investment climate, especially in the first half of this year, before the planned G8 summit in St. Petersburg.

 

The RTS index rose above 1,000 for the first time on 28 September 2005.