Page 94 - RusRPTFeb21

8.3 ​Stock market
8.3.1 ​Equity market dynamics
BCS Global Markets​ had the following recommendations for the Russian stock market in 2021:
The Russian market is to realize 18% upside through end-2021, we estimate, anticipating a low rate environment and post-pandemic economic normalization reinforced by the world’s strongest dividend case.
· RTS 2021-end target at 1680, 18% upside – soft BUY
· Keep Buying through 1450, then HOLD
· Start taking profits from the 1560 level of RTS
· RTS 2020e P/E at 12.8x, currently, expected to shrink to 9.1x next
year
· Aggregate 2021e $ NI up by 52% thanks to low base of O&G
· Consensus index target stands at 1625, 15% upside, Hold
The Moscow stock market picked up towards the end of 2020. ​The collapse in oil prices and international financial markets in early 2020 was also immediately reflected in the Moscow Stock Exchange. Towards the end of the year, however, interest in listed shares grew and the ruble-based MOEX index soared to a historically high level at the end of the year. The weakening of the ruble has kept the development of the commonly used dollar-based RTS index weak. At the turn of the year, the RTS index was about 10% lower than a year earlier.
94 ​RUSSIA Country Report​ February 2021 ​ ​www.intellinews.com