Bloomberg named companies and banks that could rise in price after a change of government. The shares of several Russian companies and banks may become growth leaders after the start of the new government under the leadership of Mikhail Mishustin.
Analysts expect that after changing the government from the budget only in 2020, up to 2.1 trillion rubles can be spent in excess of the plan. This money can go to the implementation of national projects and the promises of Vladimir Putin in a message to the Federal Assembly. Social spending will increase the purchasing activity of Russians and lead to economic growth, which will benefit Russian companies.
In the retail, analysts predict the most significant growth for the Children's World, which sells children's clothing, goods and toys. Analysts' hopes for the company are associated with an increase in benefits for families with children and maternity capital for having children. According to Bloomberg’s calculations, “The Children's World has already shown the most significant increase in value after the change of government – its shares went up by 11.8%. The papers still have a margin for growth until their dividend yield (9% now) is at an average level of 7.4% for the Russian market, said Julian Rimmer, a trader at Investec Bank Plc international financial group. Another promising market participant polled by Bloomberg analysts called the company "Magnet".
The increase in social spending can correct the statistics on loan repayments in retail banks, such as, for example, Tinkoff Bank (the parent company of the bank, TCS Group Holding, is being traded on an exchange), said Mikhail Terentyev, head of Sova Capital research center, at Bloomberg. Sberbank has already risen in price by 4% since the beginning of the White House reshuffle.
In addition, the benefits of a change of government and upcoming spending were predicted by the Magnitogorsk Iron and Steel Works. Changes in the cabinet should also lead to accelerated development of infrastructure, for which $ 400 billion was pledged until 2024, and the market looks more positively at the prospects for construction projects and domestic demand for steel, Aton investment company analyst Andrei Lobazov told Bloomberg.
So far, in addition to Detsky Mir, according to Bloomberg estimates, the top 10 most expensive companies have included the second largest Russian retailer Magnit, UC Rusal, a participant in the Forbes rating of the most reliable developers, LSR Group, AFK Sistema, VTB, Norilsk Nickel, Rosseti, MTS and Sberbank.