Bloomberg announces list of companies whose shares will go up after the change of government
Analysts at Bloomberg analyzed the Russian market and named companies whose shares will rise in price after the change of government, Forbes writes.
Economists say that in 2020, 2.1 trillion rubles will be spent over the plan. The funds will be used to implement national projects and promises of the president to the Federal Assembly. Spending on the social needs of the population will increase the purchasing power of citizens, which will positively affect the profits of many organizations.
Significant growth will be in the field of retail, namely it is about sellers offering goods for children. This is due to an increase in maternal capital and family benefits. Separately, the publication mentioned Detsky Mir network, the company’s share price increased by 11.8% after the change of government.
The growth of social payments will also positively affect the credit solvency of the population. In this case, it is likely that the repayments statistics of Tinkoff Bank loans will probably improve. Also, with changes in the state apparatus, securities of Sberbank went up by 4%.
Thanks to staff changes in the cabinet, infrastructure development will also improve. About $400 billion is planned to be spent for the Magnitogorsk Iron and Steel Works by 2024 due to the increasing demand for raw materials and steel.
Also, the Magnit chain of stores, LSR Group, VTB Bank, AFK Sistema, Sberbank and others were included in the list of promising companies.