Page 127 - RusRPTJul24

8.3 Stock market
8.3.1 Equity market dynamics
An IPO boom is underway in Russia. If in 2022 there was only one placement of the Whoosh company for RUB2.1bn rubles, last year there were already eight IPOs collectively worth RUB45bn rubles. And this year the number of IPOs will double again, according to local investment bank forecasts.
As bne
IntelliNews reported, Russia’s stock market has
come back to life fuelled
by domestic investment. Russia’s leading MOEX index regained its pre-war level
after crossing 3,500 on May 18. (chart) “As of the end of April, the MOEX Russia Index gained 4.1%, hitting a new record high over the past two years,” the Central Bank of Russia (CBR) said in an update.
The authorities are keen to see the domestic market develop to provide another source of investment capital. Russian President Vladimir Putin said in a speech earlier this year that as part of his revised National Projects 2.1 he wanted to see the capitalisation of the equity
market double in the coming years.
And with the economy running hot, many companies are reporting record profits and have resumed paying dividends.
As reported by bne IntelliNews, Russia’s domestic stock market was booming just before the Ukraine invasion as Russian retail investors
piled into equities in the
autumn of 2020 as they looked for better returns than they were earning from the traditional store of wealth: bank deposits.
Banks and brokers are now actively promoting equity investments and retail investors are predominately making investments via smartphone apps.
To attract clients to investments in the stock market they have launched a number of schemes and promotions. For example, Russia’s biggest bank and one of the most popular stocks on the market, Sber gives from three to 100 bonus shares to any customer that opens a “Best Percent” deposit account with a rate of up to 18% per annum and a brokerage account with Sberbank investment services.
Russia's economy surprised everyone by growing 3.6% last year, despite the extreme sanctions regime, and is on course to turn in a similar result this year. Fresh inflows of capital and strong growth has sparked an IPO boom as
127 RUSSIA Country Report July 2024 www.intellinews.com