Crisis, sanctions, an economic slow down have all impacted the appeal of Russia’s equity story and the pie has gotten smaller. However, as the big international houses scale back and move their research to London, while the household broker/dealer names from the 90s have either sold to state-owned banks or are a shadow of their former selves following the capital market reforms of 2012 the pieces of pie on offer are bigger for the local players that are still in the game.
bne IntelliNews editor-in-chief Ben Aris sat down with Kirill Chuyko, head of research at BCS Global Markets to talk about the changes in the equity market. The “new kid on the block” Chuyko says that not only are there fewer brokers in Moscow the many of mid-tier players in the international market are also “dead.”
BCS has expanded its research of not only the Russian market but the leading names in neighbouring markets like Kazakhstan and Ukraine where the number of interesting names are fewer, but those that exist are large and liquid.
At the same time while the Russian index has been largely range bound for most of the last four years, some individual corporate stories are very attractive. Because of its lack of foreign investment (and the oil production) Russia is actually a safe have, argues Chuyko, and with the highest dividend yields in the world Russia can be a very attractive investment – if you have the right partners.
Ben Aris, editor-in-chief bne IntelliNews
Kirill Chuyko, head of research at BCS Global Markets