With annual average sales of $144 billion, Gazprom is one of the top 3 dominant companies in the Russian market, however, the fluctuating prices of oil all around the world seems to be affecting the stock prices of companies like Gazprom that heavily rely on oil revenues. Despite the unsteady rise and fall in oil prices across the world, large companies like Gazprom seems to be enjoying a swell time as more Russians are investing in the company stock.
The Russian stock market, just like any other stock market in the world is a volatile one, and more and more Russian brokers are entering the market as more Russian residents now have more reasons to invest in the stock market. First of all, it should be noted that averaging in the Russian stock market right now will pay off positively in the nearest future despite Russia’s recension and the open conflicts with some countries in the world. The Russian ETFs (Exchange Traded Funds), seem to be one of the best performers in 2017 with up to 40% gain in the month of November alone.
One other benefit of investing in the Russian stock market is that it appears quite cheap for now, with a price to earnings ratio of 5, however, Russian stock market experts have predicted that the Russian stock market will outperform the United States stock market on a medium term. If you invest now, you will surely be proud of making the smart move when you look back five years later.
The indicators are mostly flashing the “Buy” signal more often than the “sell” signal- an indication that purchasing Russian stock will make more sense than selling, at the present moment. Russia seems to be gaining more friends than enemies in recent times, an indication that the economy of Russia will eventually become more stable within the next few years and that will trigger economic prosperity in diverse ways.
It can be hard to find any company on the Russian stock market that is “bullish” in nature. According to the “Contrarian” signals, it can be hard to see a company being bullish on the stock market. Economy rating agencies like Moody’s and Standards & Poor has cut the Russian debt rating which is another great reason one should consider buying into the stock market. In recent times, Russian president has opened his arms to the west, in an effort to strengthen the Russian economy and attract even more investors. Russia is more than open to convertible currency upgrades of communication systems and enhancement of infrastructures including the completion of the Siberian railroads to facilitate movement of goods and services to many western neighbors.
The fact that oil prices are going up once again is an indication that this is the right time to invest in stock market. Oil accounts for 25% of Russia’s GDP, and 68% of its Export. By the end of the year, a barrel of oil is projected to end at 70$ per barrel, hence it will be a huge financial blessing for those who invest in oil stocks.
Featured Image by Shutterstock: By solarseven