Russian MICEX index beat records and it increased above 1,800 points. Thus, the Micex hit four-year high at 1,815, increasing by 3.4%. According to the report of the Russian stock exchange, it is the first time Russia’s MICEX index has reached the highest point since April 2011. Some Russian corporations increased their stocks prices more than others. Phamstandard increased by 12%, LSR Group stock price rose by 10%, and Transneft increased by 10%. The RTS index, which is also a very important one, rose by 5.5% to 872 points. The main reason for the Russian stock indices strengthening is the ruble recovery. The Russian currency gained 1.7 rubles against the US dollar and 1.9 rubles against the euro. The exchange rate was 66.04 against the US dollar and 75.66 against the euro. Last year the central bank raised the key interest rate sixfold, including the increase by 6.5 percentage points in December in order to protect the ruble. Moreover, last year the regulator proceeded to floating exchange rate and spent about $88 billion of reserves on foreign exchange intervention. However, on January 30 the key interest rate was reduced from 17% to 15%. The central bank forecasts that the price increase will slow down due to the economic recession and a decline in consumer demand. Meanwhile, this year the oil price will average $50 per barrel, the GDP of Russia will reduce to 4% from 3%. Ministry of Economic Development forecasts the GDP contraction by 3% in 2015.
