The markets liked the new prime minister

The appointment of Mikhail Mishustin as the Prime Minister coincided with the next peaks of Russian indices, and many analysts see a causal relationship here, writes RBC. Investors are betting on companies that win from new initiatives of the president, which the new premiere has to be fulfilled.

What happened

On Monday, January 20, we did not recognize the new composition of the government, but the indices again updated perennial maximums: the Mosbirzhi index reached a historical peak of 3226 points, the RTS index - perennial and postcrymist (1651 paragraph).

The influx of capital last week reached $ 480 million, including $ 150 million to shares. This is a record over the past two years, writes Alfa-Bank.
Growth catalyst - replacing the low -income prime minister Dmitry Medvedev, many experts say. “The market is impatiently awaiting the announcement of the new government composition-according to the media information, Andrei Belousov will take the post of first deputy prime minister,” the alpha bank's review said. Assistant President Belousov is known for the projectfor the seizure of superpitual uses from the largest non -novent raw materials for the execution of the May Decree of Putin.
Investors buy shares of companies that will clearly benefit from crossing national projects - metallurgists and infrastructures. Over a week, UC Rusal shares increased by 16%, by 9% - MMK, by 8.6% - Norilsk Nickel, by 4% - Severstal and NLMK.
The quotes of Yandex grew by 2%, which Mishustin praised shortly after his appointment.
The quotes of the consumer market companies are also growing - they can count on a win from the demographic and social part of Putin’s message, which will cost the budget 450 billion rubles a year. The shares of the “children's world” added 11%, “Magnit” - 9%, the “Capital system” system said in the review.

What's next

The main question is how, in reality, the current rally on the Russian market is the merit (not even formed) of the government, and how much is the result of the influx of portfolio investors, overdrition and global rally.

According to the leading analyst “Opening Broker” Andrei Kochetkov, the record rise of the Russian market is primarily associated with reassessment of profitability regarding the bond market and the rate of the Central Bank, and the political factor is only one of many. The CEO of the Criminal Code “Sputnik - Asset Management” Alexander Losev believes that the change of government has nothing to do with it: there are a lot of free money in world markets, which was expressed in the Russian market in excitement purchases and inflation of assets.

Why is it important?

In the Russian market, if not a honeymoon, then the "honey week" of the new government, and it seems that the potential of the short-term growth of the IT sector and consumer companies has not yet been exhausted. More importantly, the personal composition of the new cabinet of ministers, which can be announced today, January 21, and its first steps.