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Russian shares grow in price significantly in 2023, ruble exchange rate weakens

Among the issuers, representatives of the financial sector felt confident: Sberbank (+92% and +93% for ordinary and preferred shares) and Moscow Exchange (98%)

MOSCOW, December 29. /TASS/. The Russian stock market showed positive dynamics in 2023, which was reflected in the MOEX index - the ruble indicator showed an increase of 43.87%, ending the year at 3,099.11 points (based on the results of the main session), according to the trading data. The growth of the dollar-denominated RTS index was less significant - only 11.63% (1,083.48 points).

The Russian stock market recovered thanks to the adjustment of companies to the sanctions, payment of dividends, which became a record for some companies, and the redomiciliation of quasi-Russian companies. The weakness of the ruble also had a significant positive impact - at the end of the year, the dollar-to-ruble rate grew by almost 30% to 90.36 rubles, the euro rate went up by 34% to 99.52 rubles, the yuan rate rose by 27.2% to 12.61 rubles.

Among the issuers, representatives of the financial sector felt confident: Sberbank (+92% and +93% for ordinary and preferred shares) and Moscow Exchange (98%). Among those included in the MOEX index, impressive growth in 2023 was shown by the shares of Sovcomflot (+285%), Mechel (+195% and +159% for ordinary and preferred shares), receipts of Globaltrans (+138%), preferred shares of Surgutneftegaz (+112%). These companies benefited from the reorientation of trade turnover to the east, and in the case of Surgutneftegaz, it was also thanks to the devaluation of the ruble, explained Veles Capital Investment Company.

According to the company’s estimates, in 2024 the dynamics of the Russian market will continue to be determined by the geopolitical situation and the ruble exchange rate. In general, in 2024, the potential strengthening of the ruble in the first quarter may limit the increase in the MOEX index. However, other things being equal, dividend expectations will remain positive factors for the market, as well as hopes that the Bank of Russia will switch to lowering the interest rate as inflation weakens, said Elena Kozhukhova, an analyst at Veles Capital Investment Company.