19.03.2025, 13:11
Russian companies turned out to be four times cheaper than foreign ones
Source: OREANDA-NEWS
OREANDA-NEWS Shares of Russian companies traded on the Moscow Stock Exchange have always been trading at a certain discount to the level of comparable foreign issuers, but over the past four years it has grown from 40 to 75 percent. RBC writes about this with reference to the experts' assessment.
In particular, such figures were provided by Elena Kuritsyna, Senior Managing Director for Interaction with Issuers and authorities of the Moscow Stock Exchange. According to her, in order to develop the stock market, the discount should at least be returned to the level of 2021, when Russian companies cost twice as much as competitors from China, Brazil, South Africa and a number of other countries.
Natalia Malykh, head of Finam's stock analysis department, explained that such a discount is related to geopolitical factors, including sanctions after the outbreak of hostilities in Ukraine. However, it is also affected by the macroeconomic background — increased inflation, a record high key interest rate, which will not decrease in the near future.
Investors are also deterred by currency risk. The value of the Russian currency has decreased significantly over the next few years, and its high volatility makes it impossible to calculate reliable strategies.
Andrey Smirnov, Managing Director of Customer Relations at Renaissance Capital, added that the price is affected by the difficult conditions in which companies operate, including difficulties in calculations, rising costs and salaries, and regulatory shocks.
Maly believes that even with the partial lifting of sanctions, the discount on Russian stocks will decrease, but it will still remain higher than in the markets of other developing countries. According to Andrey Petrov, Director of customer Relations at BCS World of Investments, a return to the 2021 level, that is, to 40 percent, does not look very realistic.
Earlier it was reported that amid a disappointing telephone conversation between the presidents of Russia and the United States, Vladimir Putin and Donald Trump, the Moscow Exchange index lost 80 points from the local highs reached the day before.
In particular, such figures were provided by Elena Kuritsyna, Senior Managing Director for Interaction with Issuers and authorities of the Moscow Stock Exchange. According to her, in order to develop the stock market, the discount should at least be returned to the level of 2021, when Russian companies cost twice as much as competitors from China, Brazil, South Africa and a number of other countries.
Natalia Malykh, head of Finam's stock analysis department, explained that such a discount is related to geopolitical factors, including sanctions after the outbreak of hostilities in Ukraine. However, it is also affected by the macroeconomic background — increased inflation, a record high key interest rate, which will not decrease in the near future.
Investors are also deterred by currency risk. The value of the Russian currency has decreased significantly over the next few years, and its high volatility makes it impossible to calculate reliable strategies.
Andrey Smirnov, Managing Director of Customer Relations at Renaissance Capital, added that the price is affected by the difficult conditions in which companies operate, including difficulties in calculations, rising costs and salaries, and regulatory shocks.
Maly believes that even with the partial lifting of sanctions, the discount on Russian stocks will decrease, but it will still remain higher than in the markets of other developing countries. According to Andrey Petrov, Director of customer Relations at BCS World of Investments, a return to the 2021 level, that is, to 40 percent, does not look very realistic.
Earlier it was reported that amid a disappointing telephone conversation between the presidents of Russia and the United States, Vladimir Putin and Donald Trump, the Moscow Exchange index lost 80 points from the local highs reached the day before.
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