In 2019, the Russian stock market experienced a sharp influx of private investors. From January to November, the number of individual investment accounts (IMS) on the Moscow Exchange more than doubled - from 597 thousand to 1.5 million. This is stated on the official website of the trading platform.
The growing interest of Russians in the securities market is largely due to a decrease in the attractiveness of bank deposits. About this in an interview with RT told the expert on the stock market “BCS Broker” Igor Galaktionov. According to the Central Bank, from January to the second decade of December, the average maximum rate on deposits in rubles at the 10 largest banks in Russia decreased from 7.53% to 6.05% per annum.
Similar dynamics are shown in deposits in foreign currency. According to the latest estimates of the Central Bank, from January to October, the average maximum rate on dollar deposits in the 30 largest banks in the country decreased from 3.36% to 1.32% per annum. On deposits in euros, the indicator fell from 0.65% to 0.48% per annum.
“Due to the threat of a slowdown in the global economy in 2019, the US Federal Reserve began to lower its base rate and lowered it to 1.5-1.75% per annum. Similar actions were taken by other world central banks, including the Bank of Russia. The weakening of economic risks and the slowdown in inflation in our country allowed the Central Bank to lower its key rate five times - up to 6.25% per annum. As a result, interest rates on loans and deposits in rubles and dollars have decreased in Russian banks, ”said Igor Galaktionov.
According to RT analyst of the management of operations on the Russian stock market IC Freedom Finance Alexander Osin, already in the first half of 2020, the Central Bank can reduce the key rate to 5.5% per annum. In this case, rates on ruble deposits in Russian banks may drop to 5-5.5% per annum.
However, the expert does not expect significant changes in the policies of the Fed and the European Central Bank in 2020. Therefore, deposit rates in dollars and euros in Russian banks may remain close to today's values.
It is noteworthy that now the share of Russian deposits in foreign currency is only 20.6%. This is stated in the materials of the Central Bank. As a result, the expected reduction in rates on ruble deposits may become decisive for citizens in the transition to the stock market.
“Lower rates on deposits and at the same time low growth rates in the real estate market are encouraging Russians to look for more profitable ways to place funds. In addition, thanks to modern technology, the stock market is becoming more accessible for the average citizen. This factor contributes to increasing the financial literacy of the population and increasing involvement in the securities market, ”Galaktionov emphasized.
Today, 45% of private players in the stock market prefer to invest their money in government or corporate bonds. This was told by RT head of the Otkritie Broker company Vladimir Krekoten.
Recall that bonds are debt guaranteed by the government or company. Investors buy securities and receive a stable income on them. In other words, bondholders lend their money to a business or government.
More risky asset for investment are stocks. Securities give the owner the right to receive part of the company's profits, but do not guarantee the investor a stable income. So, the value and profitability of a company's shares directly depend on the efficiency of the business.
It is curious that most Russian buyers of shares prefer to invest in securities of Russian companies, rather than foreign ones.
“On average, the share of foreign securities in the portfolio of our clients is now below 15%. This is due to the fact that the shares of foreign companies have not yet become familiar to small investors. Yes, of course, Russians use products from brands such as Apple or Samsung, but national companies - for example, Gazprom, LUKOIL or Sberbank - remain closer to our customers, ”said Vladimir Krekoten.
According to experts interviewed by RT, over time, the growing involvement of Russians in the stock market can positively affect the Russian economy.
“Despite the high growth rate of the number of private investors, the volume of household funds on bank deposits is still very high. The gradual flow of this capital to the stock market may increase the value of the Russian stock market. This can lead to positive changes in regulation and legislation. Business will be able to get even greater access to capital, as a result of which business activity in the country will begin to grow, ”concluded Igor Galaktionov.