Page 70 - Russia OUTLOOK 2022

Key profitable sectors are the oil and gas sector with a yield of 10-11%, including Gazprom with a yield of 13-14%, metallurgy and mining, where almost every company offers at least 10% of revenue with a quarterly payment period. In the financial sector, analysts expect high dividends primarily from VTB (expected yield - 14%) and Sberbank (8-10%), depending on the size of the payment (50-60% of profit).
The commodity and financial sector accounts for over 70% of the Russian market capitalization. Based on the capitalization of the Moscow Exchange index, 70% is RUB 13.3 trillion. Companies from both sectors ( Rosneft and Gazprom, Sberbank and VTB) are earning record profits this year: oil and gas companies - partly due to the energy crisis in Europe and rising prices, and banks - due to the rapid pace of lending and the growth of transactional business and lower (than in 2020) costs of reserves.
The average dividend payout ratio of the Russian market is about 55% of net profit, which translates into one of the highest dividend yield indicators among emerging markets (about 8-9% in 2021), notes the investment strategist of VTB My Investments Lidiya Mikhailova ...
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.
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
70 RUSSIA Russia OUTLOOK 2022 www.intellinews.com