Page 11 - RusRPTJan22

After growing for a year, the RTS fell 15% from a peak of 1,900 points due to the discovery of a new strain of coronavirus. Since the beginning of the year, it has grown by 16.24% and on December 8 was at the level of 1612 points. But Aton believes that the market correction is temporary and even a positive event, as it creates an opportunity for another market impulse in 2022. Analysts expect that the RTS has a growth potential of 20-30% to 2000 points in 2022.
The Russian market is now well positioned for further growth, fueled by high commodity prices, dividends that return 9-14% yields for most blue chips, and still relatively low valuations for Russian companies that trade at a 30-40% discount relative to their foreign competitors.
After growing for a year, the RTS fell 15% from a peak of 1,900 points due to the discovery of a new strain of coronavirus. Since the beginning of the year, it has grown by 16.24% and on December 8 was at the level of 1612 points. But Aton believes that the market correction is temporary and even a positive event, as it creates an opportunity for another market impulse in 2022. Analysts expect that the RTS has a growth potential of 20-30% to 2000 points in 2022.
Commodities and finance will continue to be the main beneficiaries of growth amid high commodity prices and inflation. Analysts included shares in Gazprom, Rosneft and Sberbank in the focus list for 2022, adding Norilsk Nickel and Phosagro there , since they also provide an impact on the raw materials sectors. AFK Sistema , MTS and Magnit are in the focus list, since the decline in their shares at the end of the year is a good time to enter: these companies are leaders in their sectors and therefore allow diversifying their investment portfolio. The focus list includes Yandex»And TCS Group, which remain the fastest growing Russian companies with business opportunities that extend beyond Russian borders. " Inter RAO " was listed, as it is the cheapest Russian campaign, which can grow if accelerate its activity in mergers and acquisitions (M & A).
Among the less attractive sectors, Aton singles out the mining industry, real estate, and utilities. Securities of mining companies (Norilsk Nickel, Alrosa , Polymetal ) in 2020–2021 were among the most popular, so Aton expects some cooling of investor interest, although all steel producers will continue to pay generous dividends. The real estate sector will be affected by the increase in mortgage rates in 2022 (and, as a result, a decrease in demand).
2.3 Putin’s vote in presidential elections falling, but he still doesn't face a challenger
Russian President Vladimir Putin has lost 8% in an independent poll by the Levada Center poll measuring the share he would win if presidential elections were held tomorrow, but he is still far in front of any other potential candidate.
11 RUSSIA Country Report January 2022 www.intellinews.com