11/04/2022
The Russian stock market will remain attractive for foreign investors after the removal of restrictions for them, but this will not happen before the West unlocks the international reserves of Russia, financial analyst Vyacheslav Abramov told RIA Novosti.
Money bills and coins
Experts: ruble strengthening is not a reason for the Central Bank to lift currency restrictions
"Countries such as the U.S., Britain and the EU do not want to break off relations with Russia to the end. Accordingly, we can expect to find some compromises, and when they are found, it is possible that not all foreign investors will withdraw from Russian assets," Abramov believes.
Large foreign funds that have not yet had time to sell Russian securities, according to him, will be forced to get rid of them because of the downgrading of the credit ratings of our issuers.
"Non-residents will unblock transactions only when they unblock the foreign currency reserves and start lifting sanctions, and for that, at the very least, we need a special operation to end and some understanding about further interaction to emerge," Abramov believes.
The Bank of Russia said on March 2 that it took measures to prevent mass sales of Russian securities and withdrawal of funds from the Russian financial market, as a result, foreigners will not be able to sell Russian securities they own or to receive income on them, including dividends, according to the Central Bank message.
However, many Russian companies remain attractive for investment and have good growth opportunities. They are also supported by domestic investors. "There is a noticeable arrival of domestic investors, who opened another 750 thousand brokerage accounts in March, citizens have about 100 trillion rubles in their hands and deposits, and some part of these funds will go into Russian stocks and bonds," he explained.
Abramov concludes that the entry of investors from China and India into the Russian market, whose share is still about 3%, can provide significant support to the capitalization of Russian companies.
Translated with www.DeepL.com/Translator (free version)