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

See all articles by Alexander E. Abramov

Alexander E. Abramov

Gaidar Institute for Economic Policy

Alexander Radygin

Gaidar Institute for Economic Policy; Russian Presidential Academy of National Economy and Public Administration (RANEPA) - Institute of Applied Economic Research

Date Written: February 20, 2016

Abstract

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

Suggested Citation

Abramov, Alexander E. and Radygin, Alexander, The Russian Stock Market in 2015: Returns, Liquidity and the Drivers of Change (February 20, 2016). Russian Economic Developments. Moscow, 2016, No. 2, pp. 17-27. Available at SSRN: https://ssrn.com/abstract=2735240

Alexander E. Abramov

Gaidar Institute for Economic Policy ( email )

3-5 Gazetny Lane
Moscow, 125009
Russia

Alexander Radygin (Contact Author)

Gaidar Institute for Economic Policy ( email )

Gazetny pereulok, 3-5
Moscow, 125993
Russia

Russian Presidential Academy of National Economy and Public Administration (RANEPA) - Institute of Applied Economic Research ( email )

Russia

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