RTS retreats from new high. (Stock Markets).(Russian Trading System)

The Russian Trading System (RTS) index appeared to be in the grip of a major rally for much of the week. Oil stocks remained the investors' favourites, with concerns about prices having been shelved, at least for the time being.

As the RTS touched a new post-1998 high towards the middle of the week, concerns about an impending correction were borne out as the index slipped back below the 200 points mark. But analysts see fundamentals as strong, with investment bank Renaissance Capital this week asserting that RTS could break through the 400 level before the end of the year.

On the macro-economic front the first round of accession talks between Russia and the World Trade Organisation (WTO) started this week, boosting hopes of Russia joining the organisation next year. But late last week, economic development minister German Gref warned that this scenario could be over-optimistic.

Oil firms fared well in line with the general trend of the market. Executives from leading companies met premier Mikhail Kasyanov this week to discuss the situation on the domestic market where a product glut has …