Domestic Consumption Favors Companies in Retail Sector

摘要

Over the past eight years, the Russian economy has experienced strong growth, with both MICEX and RTS indices, the main stock exchange benchmarks, surging more than 10-fold. This was fueled largely by high prices for energy and commodities, Russia's core export products. However, we believe that the real story has yet to be told, as domestic consumption will replace commodities and energy as the main economic engine. We expect the consumer/retail, construction/development and transportation sectors to benefit from strong macroeconomic conditions, rising income and access to credit.