The Russian securities market is set to reach record highs this year and continue its upward trajectory into the next, according to experts surveyed by Reuters, although the risk of a correction remains.
Russian stocks rebounded after a decline in the first quarter of 2020, when the pandemic reached global proportions. Contributing factors included high oil prices and a reduction in risks associated with sanctions.
The Moscow Exchange Index hit a record high of 3,949.07 as of August 18. It is anticipated to rise further by the end of the year, reaching 4,000.
Gas production companies are expected to increase profits against a backdrop of constrained natural gas supply in global markets, particularly in Europe.
High dividends from Russian assets are attracting novice investors, whose numbers have surged to 13 million during the pandemic and lockdowns that prompted people worldwide to stay at home. Inflationary expectations and low deposit rates are also driving investors to allocate funds into securities.
Analysts forecast that by the end of 2022, the Moscow Exchange Index could reach 4,500, with expectations ranging between 3,800 and 5,050.
