Top 5 Russian stocks with upside potential in 2022

by time news

The outgoing 2021 was one of the most volatile for the Russian stock market. Due to the pandemic and geopolitics, investors were selling off Russian assets, but the Moscow Exchange and RTS indices managed to maintain their growth – since the beginning of the year (by the end of December 28), they have risen by 14 and 15.1%, respectively. Mainly due to the growth of companies in the oil and gas and banking sectors.

Analysts consider the Russian stock market undervalued relative to its fair levels and see the prospects for its growth in 2022.The stock market will end next year at 4300 points according to the Moscow Exchange index (+ 16% to the closing value on December 28) and 1800 points according to the RTS index (+12 %), forecasts the chief analyst of Sovcombank Mikhail Vasiliev. The shares will support high commodity prices amid the recovery of the global and Russian economies, the preservation of excess liquidity in the world due to the ultra-soft monetary policy of the leading central banks (Fed, ECB, Central Bank of China) and the high dividend yield of the Russian stock market.

In the absence of shocks, the Moscow Exchange index may rise to 4,770 points, says Denis Popov, chief analyst at Promsvyazbank. The dividend yield of Russian shares in 2022 will reach 9.7%, analysts at Aton expect. In “MKB Investments” the dividend yield of the Mosbirzh index for the next year is predicted at 9%, relying on the oil and gas sector and the largest Russian banks.

Vedomosti has selected five Russian stocks, which analysts believe in growth.

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