THE RUSSIAN STOCK MARKET IN 2015: RETURNS, LIQUIDITY AND THE DRIVERS OF CHANGE

Alexander Abramov and A. Radygin
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A. Radygin: Gaidar Institute for Economic Policy

Russian Economic Development, 2016, issue 2, 17-27

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: Normative Documents; Taxation Issues (search for similar items in EconPapers)
JEL-codes: E62 E65 H21 H32 (search for similar items in EconPapers)
Date: 2016
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