MOSCOW, February 06. /ITAR-TASS/. Russia’s economy will benefit from the Winter Olympic Games to a lesser degree, but media business and transport companies will get good profits, say analysts at Otkritie Brokerage House.
“Media companies often gain from broadly covered events,” head at Otkritie Brokerage House market analysis department Konstantin Bushuyev said. “Market participants expect that advertising costs will grow. As a result, shares in CTC Media (Russia’s leading media company) and Yandex (Russia’s most popular search engine and most visited website) may grow in price.”
Moreover, experts forecast that transport companies may also benefit.Yandex — by 8.75%. Moreover, shares of Aeroflot have increased in price by 32.8%, of Transaero — by 17.42% and of UTair — by 2.7%.
At the same time analysts expressed confidence that in general, the Olympic Games would hardly exert a significant influence on Russia’s economy. “Infrastructure and construction projects in the run up to the Olympics supported the economy several years ago, while now there was no previous effect from them,” Bushuyev said.
Experts at Otkritie Brokerage House believe that the Winter Olympics will not strengthen the Russian ruble against the U.S. dollar. “A trend for strengthening the ruble has been taking place since the beginning of the week, because as of February 3 the Central Bank of Russia left the one-day auction repo rate, its main policy rate, unchanged, therefore banks that were buying currency register profits,” they said.
International ratings agency Moody's said hosting the Winter Olympics in Sochi was unlikely to give the Russian economy a big boost. The Olympics would have a neutral impact on Russia’s debt rating. Moody’s assigned Baa 1 to Russia’s sovereign debt rating with a stable outlook.