Press releases | Archive 2003
RBC shares become one of the market leaders in the 1st quarter of 2003
Moscow, April 29, 2003 - The stock of OAO RBC Information Systems (RTS: RBCI; MICEX: RU14RBCI4001) performed extremely well in the 1st quarter of 2003. The year 2003 began for RBC stock at a level of 19.39 rubles on MICEX. The biggest number of deals (226) with RBC shares was made on January 4. During the first three weeks of January RBC's share price ranged within 19.50 to 20.00 rubles and reached a peak on January 15 when the stock hit the mark of 19.96 rubles at closing. The month's high was registered on January 17 and amounted to 20.15 rubles per share. The total RBC trading volume was 24.8 million rubles on MICEX in January 2003, which is almost 10 million rubles more as compared to December 2002. In the second half of January the shares began falling and kept going down until the beginning of February. On February 3, RBC shares closed at a level of 17.90 rubles on the stock trading floor of MICEX, and dipped to the 1st quarter's low of 17.55 rubles on February 5.
The share price started surging after this retreat and on February 28 the trading closed at 19.90 rubles. In February RBC stock grew 11 percent, which had been the maximum advance since the middle of 2002. The RTS index also rose 11 percent, i.e. the dynamics of RBC shares was similar to that of the RTS index. RBC's confident growth was primarily due to the release of the company's positive preliminary financial results for 2002. Eventually, on the last day of February the share price went up to 20.00 rubles amid the noticeably increased trading volume. At the beginning of February the average volume of deals with RBC shares was 200,000 rubles (about $6,400), while at the end of February it rocketed by more than 10 times to 2.2-2.5m rubles ($70,300-79,900).
In March the rapid growth of RBC shares continued. At the beginning of March the company's share price was at a level of 20.60 rubles on MICEX and in the second half of the month it advanced to 27.20 rubles. Thus, RBC's share price gained 55 percent over 1.5 months, while the RTS index added only 22 percent over the same period. The price surge was primarily connected with positive corporate news, investors' favorable attitude towards the company, positive sentiment about its outlook and expectations for a rapid growth of the new segment, which in fact had emerged on the Russian stock market after the flotation of RBC shares. Since the IPO when RBC placed 16 percent of its stock simultaneously on RTS and MICEX, the free-float of the company has increased to 20 percent. This growth is primarily attributed to the conversion of pre-IPO bonds by foreign investors, which demonstrates their confidence in the company. RBC is planning to further enhance its free-float to 25 percent in the next 1 or 2 years.