Page 143 - RusRPTJun24

8.3 Stock market
8.3.1 Equity market dynamics
The MOEX Index has exceeded 3,500 points for the first time since February 18, 2022, according to trading data on May 18. As of 3:52 p.m. Moscow time (12:52 p.m. GMT), the MOEX Index was up by 0.4% at 3,500.04 points.
In the first quarter of 2024, the Moscow Exchange increased its net profit according to international financial reporting standards (IFRS) by 35% y/y to RUB 19.355bn. This is stated in the message of the trading platform. During trading on May 22, Moscow Exchange shares rose by 0.76% to RUB 239.87. As of 10:06 Moscow time, their cost was 238.3 rubles. (+0.11%). The Moscow Exchange index was at 3,441.07 points (+0.37%). EBITDA in the reporting period increased by 33.7% y/y to RUB 25.5bn. Fee income increased by 45.9% and amounted to RUB 14.53bn. Net interest income increased by 47% to RUB 19.4bn. The cost-to-income ratio was 28.7%.
The Russian equity market is seeing a rise in pre-IPO (initial public offering) deals, according to a review by Kommersant daily. As followed by bne IntelliNews, in 2023 the Russian market saw eight IPOs for a total of almost RUB41bn rubles, and in the first four months of 2024 there were six IPOs for RUB37.6bn. In four cases (Eurotrans, Sovcombank, Europlan, MTS Bank), the volume raised exceeded RUB10bn. However, as IPOs are many times oversubscribed (by over 10-40 times in some cases), investors are looking into earlier stages of financing, such as venture capital and direct investments, which drives demand for pre-IPOs. In such deals investors purchase stakes in companies gearing up for a future IPO. At the same time the pre-IPO investments carry low liquidity and significant risks, potentially leading to substantial losses. According to the Central Bank of Russia, there are several dozen investment platform operators in Russia, some of which conduct pre-IPO deals. In 2023, such platforms carried out 25 placements for almost RUB1bn, according to Kommersant's calculations. The largest pre-IPO deals were CarMoney (RUB220mn), RBT (RUB155mn), Hyper (RUB127mn) and Osnova Tech (RUB90mn).
According to the Moscow Exchange, the total trading volume in April amounted to 124.5 trillion rubles, remaining at the March level, but immediately increasing by 38% y/y. The key contribution to the growth in volumes relative to the previous month was made by the money (+6% m/m and +41% y/y) and stock markets (+3% m/m and +78% y/y), while the restraining factor was the foreign exchange (-12% m/m and +23% y/y) and derivatives markets (-8% m/m and +43% y/y). Let us recall that from the point of view of the effective commission, the most profitable for the Moscow Exchange are the stock and derivatives markets, the least profitable are the money and foreign exchange markets. Taking this into account, commission income directly related to trading in April may also be at the level of the previous month, despite the favorable calendar factor (three additional trading days, including April 29–30).
143 RUSSIA Country Report June 2024 www.intellinews.com