Utilities

The majority of utilities’ stocks, after surging by more than 200% on
average in 2007 have plummeted by a similar percentage. However,
the sector remains rather attractive in view of the expected
implementation of Regulatory Asset Based pricing methodology in
distribution and the implementation of full-fledged market of bilateral
agreements in generation. High intensity of energy consumption
creates the preconditions for wide-scale reforms in the sector. The
shares of 27 issuers are listed on PFTS which represent the energy
industry. The majority of them are energy-distribution companies
(oblenergos), comprising 23 positions. More than half of them trade
actively, while another portion can be considered as conventionally
liquid securities. All traded gencos are blue chips and are part of the
PFTS index basket.