Russia's Financial Markets in July 2014

Abstract

The MICEX Index, after having risen by 2% to 1,513 points over the first ten days of July, then dropped by 10% towards the month’s end. By 28 July, MICEX Index stood at 1,361.9 points. The MICEX’s capitalizati on by 28 July had amounted to Rb 21.8 trillion (or 32.0% of GDP). Russia’s domestic corporate bond market displayed a surge of the weighted average eff ective yield on corporate bonds in face of a declining corporate bond portfolio duration index. Nevertheless, in July the market volume and the marker index, as well as investor primary and secondary bidding activity, were on the rise.