The increase in the key interest rate caused the shares of Russian companies to fall. Evgeny Kogan, Head of Moscow Partners Investment Group and Professor of the Faculty of Economic Sciences at the Higher School of Economics, announced this in an interview. URA.RU.
According to Kogan, the reasons for the drop in the stock market are the unfavorable high ratio for the stock, as well as the need to correct the strongly growing market. He also noted that after the devaluation of the ruble, the share of exporters increased as it was seen as a hedge against devaluation. But now, when the ruble strengthens a little, people are selling the exporters’ shares. Kogan sees this as unwise, as exporters’ profits will remain high regardless of the dollar.
According to Kogan, it’s only worth buying shares from a long-term perspective. He points out that the decision to buy shares depends on the time horizon. If you are planning to invest for six months or a year, this may be a reasonable decision. But the expert explained that if we are talking about short-term operations, then no one can predict their outcome.
Previously, the Central Bank of the Russian Federation sharply raised up to 12% key rate in an unscheduled meeting.