The Russian securities market has grown to its highest level in more than two years. During trading on Thursday, April 4, the Moscow Exchange index added about 0.3% and at a certain moment approached the mark of 3406 points. The last time such a high level was recorded was February 21, 2022.

Let us explain that the indicator displays the dynamics of changes in stock prices of the largest and most promising companies from the main sectors of the Russian economy. An increase in the indicator indicates an increase in the price of enterprise securities, while a decrease indicates the opposite.

“There are a number of factors based on which we are seeing growth in the stock market. In particular, investors note the stability of the Russian economy. We have already developed immunity to sanctions and adapted to them. Of course, there are problems of secondary sanctions, but they already affect the market and the economy as a whole to a lesser extent,” Ivan Manaenko, director of the analytical department of Veles Capital Investment Company, explained to RT.

According to data from the Ministry of Economic Development published yesterday, in the first two months of 2024, Russia’s GDP increased by 6% compared to the same period in 2023. Confident growth was observed in most industries. For example, construction work increased by 4.5%, paid services to the population - by 6.4%, manufacturing - by 10.6%, retail trade increased by 10.7%, and wholesale - by 14.5%.

“The Russian market is well supported by strong company reports, as well as rising oil prices in combination with the current ruble exchange rate. In addition, stock prices are affected by the approach of the summer dividend season,” Yulia Goldina, senior analyst at BCS World of Investments, noted in an interview with RT.

Since the financial results of many organizations over the past year have been quite positive, businesses can pay large dividends to shareholders. Against this background, in an attempt to gain additional profit, investors began to actively buy securities of such companies, BitRiver financial analyst Vladislav Antonov told RT.

“Financial statements and the existence of a dividend policy are the most important factors for making investment decisions. They allow the investor to make simple calculations and understand for himself what dividends on shares can be counted on, even before the company announces the amount of the payment,” the specialist added.

Note that at the end of winter 2022, shortly before the start of the SVO and the introduction of Western sanctions, the Moscow Exchange index fluctuated in the range of 3300-3700 points. Meanwhile, immediately after the economic restrictions of the US, EU and other countries regarding Moscow came into force, shares of Russian companies fell sharply against the backdrop of rapid capital outflow.

As a result, the main stock exchange indicator fell by almost half and fell below 1,682 points for the first time in six years. However, after this the indicator began to gradually recover and today has managed to return to pre-sanction levels.

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As Russian President Vladimir Putin previously stated, the stock market, together with the banking system, must fully ensure the influx of capital into the economy. In this regard, the head of state instructed to take measures to double the capitalization (total value) of the country's securities market in the next six years.

“The Russian stock market needs to strengthen its role as a source of investment. Its capitalization by 2030 should double compared to the current level and amount to 66% of GDP. At the same time, it is important that citizens have the opportunity to reliably invest their savings in the development of the country and at the same time receive additional income,” Putin emphasized.

Let us note that over the past year, the number of private investors on the Moscow Exchange has increased by more than a quarter and reached 31.1 million at the end of March 2024. Moreover, the total volume of their investments in the stock market over the past 12 months has increased 2.1 times - to 82.2 billion rubles.

According to Yulia Goldina, smart investing in securities allows you to protect money from inflation and possible exchange rate fluctuations. Meanwhile, the main factor in the arrival of an increasing number of citizens on the stock exchange is the financial success of Russian companies, the expert believes. Vladislav Antonov shares a similar point of view.

“Many people are attracted by the tax-deductible nature of individual investment accounts and the current financial results of large companies, which provide the opportunity to make good money on dividends. It is also worth noting that the corporate governance of Russian businesses has improved significantly and now paying dividends, including interim ones, and publishing a dividend policy has simply become good manners,” concluded Vladislav Antonov.