The RTS Stock Index (RTS Index) is a key indicator of the state of the Russian stock market. It is calculated based on the performance of a set of securities since 1995 and started at 100 points.
The essence of the RTS index
The calculation of the RTS index is based on the shares of the 50 most liquid issuers from key sectors of the Russian economy. The largest share belongs to oil and gas companies. Among them, for example, Sberbank, Gazprom, Lukoil, Rosneft, Norilsk Nickel, Surgutneftegaz, RusHydro, Uralkali. Their list and share in the calculation of the index is revised on a quarterly basis. This is done in order to adequately reflect the structure of the Russian economy.
The value of the RTS index is defined as the total market capitalization of the shares / total market capitalization at the start date * index at the start date * adjustment coefficient. Thus, the change in the value of shares of issuing companies proportionally affects the value of the index.
The RTS index is calculated in points, in terms of dollars. Capitalization is determined based on the value of the shares and the number of shares issued, taking into account the free float.
The historical minimum of the RTS was set at 37.74 points in 1998. The RTS index reached its maximum value in the middle of 2008, when it was 2400, compared to 1995, it grew 24 times. In 2013, the maximum was 1638.08 points. The RTS Index is recalculated daily, during each trading session. The first index value is called the open value, the last - the close value.
Differences between the RTS and MICEX indices
Another significant Russian index is the MICEX. It has been calculated since 1997 and is a capitalization-weighted market index of shares of the most liquid issuers traded on the MICEX. The MICEX index is calculated for the shares of 30 companies. Thus, the RTA covers a broader market.
After the two Russian exchanges RTS and MICEX merged, the RTS index is one of the main ones on the Moscow Exchange. The difference between the MICEX index is that it is calculated in rubles. During the depreciation of the Russian currency and the growth of the dollar exchange rate, the RTS index is more convenient.
RTS sectoral indices
The number of Russian stock indices is constantly increasing, largely due to the emergence of new industry indices. So, for example, today the indices of the oil and gas (RTSog), telecommunications (RTStl), metallurgical (RTSmm), industrial (RTSin), consumer (RTScr), electric power (RTSeu), financial (RTSfn) sectors are calculated. Investors can use these indices to assess the health of individual economic segments.
Indices are also calculated that include shares of mid-cap companies (RTS2); the RTS Standard index (RTSSTD), which covers 15 blue chips and is the basis for FORTS futures; volatility index (RTSVX); regional index RTS Siberia (RTSSIB).
