Private investors are seeking for alternative ways to increase profits
The presence of private investors on the Moscow stock exchange has doubled and now it totals 3.86 million people. In 2019 their number was 1.9 million.
The St. Petersburg stock exchange has enlarged over the past year from 910,000 to 3.06 exchange participants. Provided that only foreign assets can be traded on it.
The regulator explained the increase in the number of depositors by lowering rates on bank deposits at a time when the securities market is actively developing. Due to a fivefold decrease in key rates on deposits, the interim rate of ruble deposits is 6,011%, which is a historical minimum.
Equity markets continue to break records. The Moscow Exchange Index rose for 28.5%, while the S&P 500 of the leading US companies increased for 29%. The growing indicators have drawn the attention of private investors, and as a result we observe their activity in the market.
Sergey Rybakov, director of operations with securities of Alfa Bank, confirmed the hypothesis that interest rates influence deposits. In his words, due to low rates, investors are looking for bank deposits alternative with the possibility of obtaining high profitability. By this time, the stock market was ready to accept so many depositors. Dmitry Panchenko, Director of Tinkoff Investments, spoke about the impact of advertising campaigns. Thanks to them, people became interested in investment methods and turned out to be more financially literate.
Despite the increase in the number of brokerage accounts, the share of investments in securities by Russians is still small. It is 13%, while this figure is over 80% in the US.