Template-Type: ReDIF-Paper 1.0
Author-Name: Abramov Alexander
Author-Name-First: Alexander
Author-Name-Last: Abramov
Author-Workplace-Name: RANEPA
Author-Name: Radygin Alexandr
Author-Name-First: Alexandr
Author-Name-Last: Radygin
Author-Workplace-Name: Gaidar Institute for Economic Policy
Author-Name: Chernova Maria
Author-Name-First: Maria
Author-Name-Last: Chernova
Author-Workplace-Name: RANEPA
Title: The Russian Financial Market in 2021
Abstract: The market for Russian stocks was characterized by growth nearly throughout the whole year 2021; however, starting from November, it began to display a trend towards its downward adjustment. As shown in Fig. 1, among the 43 national stock indexes denominated in different currencies around the world, a positive annual return in 2021 was demonstrated by the composite indexes of 33 countries. The highest growth was achieved by the Argentina index (33.5%), followed closely by the S&P 500 (26.9%). The growth of Russia’s indexes, the RTS and IMOEX, was almost the same: 15.0% and 15.1%, respectively. However, over the first two months of 2022, the situation changed significantly: in January-February, IMOEX fell by a record 38.4%, and the RTS Index, by 41.3%. Over the same period of 2022, a majority of the 43 national stock indexes moved downward, except only a few of them, which were mainly those of developing countries: Argentina, Brazil, Greece, Malaysia, Norway, Singapore, Turkey, the Philippines, and the RSA. The main reason behind this massive adjustment of national stock indexes was the announcement, in mid-December 2021, of the leaders of the US Federal Reserve System (FRS) that in March 2022 they planned to curtail the current quantitative easing program, and so there was a high probability that the interest rates set by the Central Bank would begin to climb.
Classification-JEL: G01, G12, G18, G21, G24, G28, G32, G33
Keywords: Russian economy, stock market, bond market, corporate bond market, derivatives market, private investors
Creation-Date: 2022
Revision-Date: 2022
Length: 82 pages
File-URL: https://www.iep.ru/files/RePEc/gai/ppaper/ppaper-2022-1197.pdf
File-Format: application/pdf
File-Function: Revised Version, 2022
Handle: RePEc:gai:ppaper:ppaper-2022-1197