Page 79 - RUSRptApr17

situation unfolds as forecasted," "A quicker decline in inflation opens the scope for reduction of the key rate already in April, and I even admit that the key rate reduction by between 25 and 50 basis points may be considered at the next board meeting in a week," she said Thursday.
8.3 Stock market
Russian stocks are a buy again, after the market gained more than 50% in 2016 and is forecast to return some 15%-20% this year. No-one is expecting a repeat of the broad-based rally that made everyone rich in the mid-noughties, but for the well-informed investor there are some gems on offer as the economy starts to recover and Russia’s biggest companies use the crisis to increase their market shares. Economic growth may be lackadaisical, but analysts are highlighting the earnings at some of Russia’s corporate heavyweights, which have been soaring. Russia’s market re-rated last year as it became increasingly clear that the nine-year long gloom since the global financial crisis was slowly lifting, and political tensions were also being dialled down. The dollar-denominated Russia Trading System (RTS) returned more than 50% in 2016 and the ruble-denominated Moscow Interbank Currency Exchange (MICEX) put in a 24% gain to reach new all-time highs.
After last year’s sterling return of over 50%, the Russian markets have sold off by about 10% in the first three months of 2017 as the “Trump bump” came to an end and oil prices sold off somewhat.
But investors are still keen on the Russian market, which is expected to return an aggregate of 15%-20% this year ; and the best companies should produce a lot more than that. Russia’s equities is a stock pickers market rather
79 RUSSIA Country Report April 2017 www.intellinews.com