The Russian Stock Market in 2015: Returns, Liquidity and the Drivers of Change
Russian Economic Developments. Moscow, 2016, No. 2, pp. 17-27
11 Pages Posted: 22 Feb 2016
Date Written: February 20, 2016
In 2015, faced with declining oil prices, the weakening ruble and the outflow of funds of foreign portfolio investors, the Russian stock market found itself in a slump; in fact, this situation has started eight years ago, during the 2008 crisis. This negative trend was augmented by the continuing decline of the share market’s liquidity in the Moscow Exchange. This was in part a reflection of the general downward trend in the investment attractiveness of the stock markets in the BRICS countries, but more specifically – the upshot of the troubles experienced by Russia’s economy due to the low development level of domestic institutional investors. The conservative attitude towards investment in Russian shares displayed by foreign portfolio investors for a period of more than two years already is indicative of their doubts with regard to the prospects of economic growth in Russia. In view of such conditions, the economic growth and recovery in the Russian stock market can rely only on the domestic savings system.
Keywords: Russian economy, stock market
JEL Classification: Е62, Е65, Н21, Н32
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