St Petersburg Exchange booming

RUSSIA / FSU POLITICS - In Brief 09 Feb 2021 by Alex Teddy
Reddit has helped investment make St Petersburg (SPB) become the largest exchange in Russia. SPB trading reached USD 36.1 billion in January 2021. That was ahead of Moscow's bourse at USD 30.2 billion according to Bloomberg.SPB is mostly about Russian retail investors. SPB enables them to purchase foreign equities. The Moscow Exchange is principally concerned with trading Russian shares.The GameStop phenomenon in the United States has been replicated in Russia. A short squeeze started by retail investors and communicated on Reddit has led to this.SPB does not have trading in GameStop shares. Nonetheless the story inspired a surge in trading of other foreign equities. Volumes grew 14% in a month.Small scale non-professional investors have created a surge in investment since 2019. There are now lots of low cost brokerage apps. Returns on bank deposits are derisory, so canny people are making their money work harder for them.The Russian Central Bank is faintly worried about this. These inexperienced investors could be gulled by hard-sell advertising. These include no-loss trial periods and advertisements focusing on record returns. Sberbank found that 30% of brokerage clients are under the age of 30. That was only 2% before the retail investment boom commenced in 2019.The President said last week that people should be more prudent in their investments. GameStop's share price is volatile.

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