Page 129 - RusRPTJul24

However, the value of the IPOs has been increasing steadily as more companies come to market; the larger IPOs included Evroplan which raised RUB13.1bn ($152mn), and MTS Bank with RUB11.5bn. Both stocks have been stable since their listing and are trading at prices higher than their debut price.
While the majority of companies are listing on MOEX, two have chosen to list on the St Petersburg Currency Exchange (SPEB), which formerly specialised in foreign stocks but now focuses on sanctioned companies. These two were: the Element Group (created on the basis of the assets of Sistema and Rostec); and Svetofor Group (a driver training operator).
Russian stock market MOEX index sold off after new US banking sanctions news released on June 13.
Market fell just under 10% from recent peak of 3,500 in May to close at 3,171 yesterday – a hefty fall.
But 3,500 was a post-war high and index is still above where it was on 1/1/2024 of 3,130. So YTD the market is still up slightly by 1.3% YTD
This is painful, but not a disaster. MOEX (ruble denominated) is in focus as its part of Putin’s guns and butter plan as he wants to double the market cap of local capital market as part of long-term development plans to create a new domestic source of investment capital.
And market has been growing in last two years without investment from unfriendly countries (that used to make up c40%) and friendly countries investors are still in the market.
This is all par for the course for Russian stock market. the only thing you have to know is “is this a crisis year?”
If it is not then the market usually returns at least 20%. If it is then the market can lose as much as 75%.
So, in this context a 10% drop is not bad at all. And based on the historicals this is not yet a crisis year for stocks.
And given the big stocks like oils and banks are all very profitable (bar Gazprom), market is likely to recover, following some rebalancing (eg selling the most sanctioned exposed banking stocks like VTB and Sber).
129 RUSSIA Country Report July 2024 www.intellinews.com