Wednesday, January 11 2017 19:12

ArmInfo.2016 was one of the most successful years for the Russian market. What events have become a catalyst for growth and what awaits us in 2017, Konstantin Tserazov, an independent expert, economist, ex-deputy head of global markets at Troika Dialog, told in our interview.

The Russian market experienced a very busy year, following which the MICEX index soared by 27%, the RTS index showed an increase of 52%.

To a large extent, the growth was ensured by the recovery of commodity prices, and above all, oil prices, the expert points out. Thus, a barrel of Brent oil by the end of the year against the background of the decision of the OPEC countries to limit production increased in 2016 from $27 in January to $57 in December.

Photo:Konstantin Vladimirovich Tserazov: “Reducing the rate in 2017 will lead to a reduction in the yield of conservative instruments, such as bank deposits and bonds, and therefore stimulates public interest in shares.”

“We can say with confidence that the market has adapted to external shocks. It is impossible not to note the stabilization in the Russian economy - at the end of 2016, inflation slowed down to 5.4%. The Bank of Russia has lowered the key rate from 11% to 10%, which creates good potential for the development of the market and the economy,” said Konstantin Tserazov.

The locomotive of the market was the shares of the transport sector, which grew by 117%. Almost the same growth - by 110%, was noted in the power industry sector, the favorites were the shares of Inter RAO and FGC UES, which soared by more than 240%.

The growth in prices for metals made it possible to show good dynamics for the shares of metallurgists and mining companies, among which Mechel stands out with an increase of 177% and Raspadskaya, which added 162%.

“I believe that the positive dynamics of oil prices against the backdrop of production cuts by leading countries will continue in 2017, I expect that the average annual price of oil will be at the level of $55-60 per barrel of Brent,” predicts Konstantin Vladimirovich Tserazov. The expert advises to take a closer look at companies in the oil industry. Among the market favorites in 2017, the expert also sees the shares of the consumer and financial sectors against the backdrop of positive dynamics in these industries.

In 2017, investors' attention will be riveted to dividend stocks, Konstantin Tserazov is sure, and above all to blue chips with state participation, among which Alrosa, Aeroflot, Sberbank, RusHydro, Gazprom should be singled out.