To find out how to turn off your ad blocker, click here.
If this is your first time registering, check your inbox to learn more about the benefits of your Forbes account and what you can do next.
Russian corporations are relocating their own country. Of course they love London and New York, but Moscow is never so bad. As the Russians would say: Dobro pozhalovat ‘domoy! Google Translator: Welcome home.
No longer reap the benefits of a h8 transfer into savings accounts, the Russians are now making an investment in the stock market. After years of designing the brilliant foreign economic center, Moscow is, by season, about to meet the billions of rubles spent on glass and steel, and can be a giant component thanks to Russian corporations that now help turn the population into their shareholders Do not appear as NYSE indexes. They will also provide their shares in Moscow, in dollars to win the jackpot.
“The explosion in retail activity and participation in the design of domestic investors give corporations an additional explanation as to why to seek a catalog in Moscow to seek additional liquidity and minimize volatility,” says Alina Sychova, head of origin for capital markets at Sova Capital.
Exposure from Russian retail investors is rising rapidly. They now account for about 40% of the total volume of transmovements in shares indexed at the Moscow Stock Exchange (MOEX).
A MOEX score will have to connect the MSCI Russia index, which of course is negotiable, which means more portfolio for Russian companies in this benchmark.
Some Russian corporations are considering the board abroad to make a valuation, for example, the Nasdaq remains a children’s game for generation corporations that acquire “several generations of American size.” The Moscow-based task search company, the Headhunter Group, indexed on Nasdaq last year.
MoEX turns out to have secured its position as a serious competitor; if not as a birth point, then yes as a true support.
If you’re a Russian apple that issues stocks in those days, you’re not just going to list them in New York and London. You’re running in Moscow. You discovered the Russian retail investor.
This volume of operations.
“The incorporation of a secondary directory in Moscow has been a gigantic liquidity ratio force for us,” said Neri Tollardo, head of relations with foreign investors at Tinkoff Bank. Average trading volumes have been “tripled to the maximum,” he said, “and the feature allowed us to take advantage of the explosive expansion of the retail investor market position in Russia. About 50% of our average transaction volume is now in Moscow.
Tinkoff registered with MOEX in October. Its stocks have increased by 30.4% at birth in the year.
In the 1990s, when the Soviet Union collapsed and the Russians tried to seized economic capitalism, a handful of companies such as Mobile TeleSystems and mining giant Mechel were indexed on the New York Stock Exchange. Everyone sought to register because there are no professional courses in Russia. They had no choice.
After the signing of new regulations, the Sarbanes Oxley Act has become more restrictive and costly to comply with Securities and Exposure Commission regulations for indexed companies. The London Stock Expo, less liquid than the U.S. stock market, was much cheaper and became an alternative.
Russia began designing its stock markets in the 2000s, emerging from the days of cowboy capitalism that immediately followed the Soviet Union.
When the Russian trade formula and Micex merged in 2013, the position of the Russian security market modernized and corporations that included London and New York regulations were remarkable.
Russian banks like Tinkoff and the country’s main bank, Sberbank, are looking to accentuate the interest of the comparative apple among the shareholders of Russian companies.
Another explanation of why for this resolution is that liquidity is running low in London, in particular.
At its peak in January 2012, 37 Russian corporations were indexed in the LSE, however, as of June 2020 there were only two-quarters and there were no new Russian lists due to the transfer of the Passus Polyus miner in June 2017, LSE statistics.
Apple’s Apple TMK can also go away this month. CEO Igor Korytko said he no longer considers his board in London to be a priority.
Some foreign investors could also have been rejected in Russia for the past four years, as the rustic has a political boxing bag, blamed for everything from Brgo to the election of Donald Trump in 2016.
MOEX had 12 “re-entry” corporations in the city, not to mention the EN group, which for a time was only indexed in London and now has a MOEX list.
In the first component of this year, retail consumers invested 220 billion rubles ($2.8 billion) in Russian stock, MOEX. That’s 56 times more than in 2019.
“Our directory at the local stock exhibition marks a major milestone in our history as a public company, allowing millions of Russians to become our shareholders,” said Boris Dobrodeev, CEO of The Mail.ru Group. “We will continue to create technologies that would design the burden for shareholders and that directory will generate the overall liquidity of our company.”
Recently, Headhunter said he was able to act. They were approved for a secondary directory of the company’s U.S. deposit certificate on the Moscow Stock Exchange. They will remain indexed in the United States.
Whether it’s a return pass or a rediscovery, it’s usually a big interest in the Russian retail investor.
According to MOEX, in 2014, 72,000 new retail consumers joined the market; A respectable figure for a counterattack addicted to currency deposits and Russian government bonds. In 2019, it increased to 2 million virtuous friends and in the first six months of 2020, MOEX added 1. five million new entrants to the Russian stock market.
I spent 20 years as a journalist for top productive in the industry, adding as a member of the staff founded in Brazil for WSJ. Since 2011, I have focused on business and making an investment in the