Putin’s Spending Spree Could Boost These Russian Stocks
- Retailers, steelmakers, banks poised to drive rally further
- New cabinet could deploy $34 billion this year alone, ING says
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A clutch of Russian stocks is particularly well placed to reap the benefits of the possible $34 billion spending windfall under the nation’s new government.
Online bank TCS Group Holding, children’s toy and clothes retailer Detskiy Mir PJSC, and Magnitogorsk Iron & Steel Works PJSC were among the companies named by strategists as most likely to drive the rally in Russian equities. The arrival of a new government with a mandate to spend has fueled a 4% gain this year for local stocks, which trade at about half the projected price-to-earnings ratio of the main emerging-market benchmark.