The Russian stock market is expected to reach record heights this year, driven by a recovery in commodity prices and persistently low interest rates globally, according to a survey of market experts by Reuters.
The Russian market experienced significant setbacks in the first quarter of last year due to falling oil prices, which is the country's main export commodity. However, by the end of 2020, it began to rebound and has been on a steady upward trajectory since then.
The Moscow Exchange Index, which hit a record 3,713.49 by May 10, is projected to rise to 3,819 by the end of this year.
Gazprombank forecasts that the market may face a correction of up to 10% this summer due to slower vaccination rates in developing countries compared to developed ones.
The recovery of the global economy, rising oil prices, and accommodative monetary policies from most central banks all contribute positively to the Russian market.
Experts still consider the potential for increased sanctions to be a major threat to its performance.
By the end of 2022, it is anticipated that the Moscow Exchange Index could reach 4,210, with expectations ranging between 3,800 and 5,250.