OREANDA-NEWSAlthough some experts consider the Russian stock market to be overheated, most experts polled by the Russian media predict its continued growth in 2020. But it's far from as fast as in 2019, when the Mosbirzi index calculated in rubles grew by 29% and the RTS dollar index grew by 45% due to the strengthening of the ruble.

Due to this, the Russian stock market provided investors with the highest income in the world compared to other markets. The median forecast of analysts surveyed by the media for 2020 is much more modest: an increase of 8.7 and 10.2%, respectively. In the case of the failure of Donald trump in the November presidential election in the US, the market may even become “bearish”, experts warn.

In the period of low interest rates, investors around the world are looking for more profitable assets, and Russian companies look extremely attractive due to strong financial indicators, good cash flows and easing geopolitical tensions, analysts say and expect the RTS index to grow by 15-20%.

The potential to reduce the key interest rate of the Central Bank is close to exhaustion, says Donets (the expert expects only one decrease by 25 bp, to 6%). A further increase in Russia's sovereign rating is not expected. Therefore, the stock market will continue to grow, but not as significantly as last year.