stock exchange

The daily volume of transactions in shares for the first nine months of 2021 grew by 26% compared to the same period in 2020, to 110 billion rubles, Izvestia was told at the Moscow Exchange… In addition, new trends have emerged on the market. Our investors began to give more preference to shares of domestic companiesrather than foreign, as seen in a study by Investing.com Russia. So, only Virgin Galactic and Tesla got into the top of the most popular foreign securities, although last year Coca-Cola, Apple, AT&T, Ford, Amazon, Disney, etc. were also on the list. In addition, unlike in 2020 this year, local enterprises were not included in the top companies in which residents of the regions most often invest from their cities.

Regional alignment

According to the press service of the Moscow Exchange, in the first nine months of 2021, the daily volume of transactions in shares increased by 26% compared to the same period in 2020, to 110 billion rubles. Wherein the number of private investors from January to September jumped by 10.5 million to 14.5 million, they opened almost 24 million brokerage accounts.

Photo: Izvestia / Pavel Bednyakov

In addition, new trends have emerged on the market this year. So, Russian unskilled investors preferred to invest in shares of national companies, rather than in Western, although the situation was reversed last year. So, among the most popular investment organizations among Russians were only two foreign ones – Virgin Galactic, which develops space tourism, and the electric car manufacturer Tesla… Last year, the list also included Coca-Cola, Apple, AT&T, Ford, Amazon, Disney and others, according to data from Investing.com Russia.

Shares of domestic companies have become more popular, including due to the significant growth that they showed this year, says Anastasia Kosheleva, head of Investing.com Russia. The greatest demand in the first half of 2021 was used by the securities of Sberbank, Norilsk Nickel and Gazprom, it was they who showed a record growth in the history of their presence on the exchange during this period: their securities rose in price by 30.5% (to 362.7 rubles) , 21.7% (up to 26 461 rubles) and 31.8% (up to 374.5 rubles) apiece, respectively, reported Anastasia Kosheleva.

Another trend this year was decreased interest in local companies. In 2021, the choice of investors from the regions was almost the same as in Moscow, but in 2020, non-capital residents more often invested in enterprises developing business in their cities.… For example, in Chelyabinsk they were interested in the Chelyabinsk Forge and Press Plant, etc., as can be seen from the results of the study. Shares of local companies were bought by unqualified investors in 2020 during the crisis to cash in on further recovery, but in 2021 they redistributed assets towards more conservative instruments to reduce risks, Anastasia Kosheleva said. Plus, they have attracted attention with their rapid growth.

The top ten investment leaders among Russian regions include Moscow, St. Petersburg, Krasnodar and Krasnoyarsk regions, Moscow, Sverdlovsk, Samara and Novosibirsk regions, as well as Tatarstan and Bashkortostan.

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Photo: RIA Novosti / Grigory Sysoev

Active investments

The largest brokers confirmed the growing demand of Russians for investments in shares. The volume of trades in foreign securities in January-August 2021 on the St. Petersburg Exchange amounted to $ 259 billion, 55% more than in the same period of 2020, said Anton Startsev, senior analyst at MKB Investments. The St. Petersburg Exchange did not respond to Izvestia’s request for market trends in 2021.

BCS World of Investments also recorded an increase in the demand of unqualified investors for investments in shares: their clients’ portfolio in foreign securities doubled in September 2021 compared to the same month in 2020, and the corresponding indicator for Russian shares – 1.5 times… However, the size of investments in Russian securities turned out to be higher, said Igor Pimonov, head of the department of the Internet broker BCS World of Investments.

Such the interest of private players is associated with the growth in the stock market and the availability of exchange infrastructure, says Aleksey Zhogolev, director of the PSB wealth management department. According to him, this year, the most popular were the shares of metallurgical, coal mining and raw materials companies, as well as, in particular, enterprises of the fuel industry.

In foreign securities, Russian investors showed the greatest demand for the high-tech sector, which accounted for 31% of investments, and the transport sector, which took 10%., added Yaroslav Kabakov, director of strategy at Finam investment company. In the first quarter of 2021, the popularity of Western stocks increased due to the expansion of the list of foreign companies traded on the Moscow Exchange, however, in the second quarter, public interest shifted to Russian stocks and bonds, the expert said.

Photo: TASS / Anton Novoderezhkin

Despite the surge in demand for Russian securities, foreign ones will not lose their popularity, says Georgy Vaschenko, head of the trade operations department at the Russian stock market at Freedom Finance. While maintaining the current low rates for dollar deposits, investors will continue to look for additional returns in the stock market, but volumes will decrease compared to 2020, says Denis Gorev, director of investment consulting at Otkritie Private Banking.

The main reasons for the growing popularity of Russian shares are expected dividends and ruble appreciation. The national stock market is growing also thanks to oil quotes, and this attracts players, explained Associate Professor of the Department of Financial Management of the PRUE. G.V. Plekhanova Ayaz Aliev.

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The situation is complemented by a reliable macroeconomic situation, despite high inflation, a relatively low level of public debt, budget surplus, etc. As a result, from January to mid-October 2021, the Moscow Exchange index rose by 30%, and the American S&P 500 stock index – by 18%, said Mark Goikhman, chief economist at the TeleTrade information and analytical center. In addition, when investing in foreign shares, there are risks of losing profitability due to exchange rate differences, the specificity of the country also plays a role, Ayaz Aliyev added.

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