An expert explained the fall of the Moscow Exchange Index

The MosBirch index is falling on the back of ultra-tight monetary policy (MP) of the Central Bank of the Russian Federation (CB RF) and geopolitical uncertainty, says Mikhail Zeltser, stock market expert at BKS Investment World. He told Izvestia on December 17.

Earlier in the day, the Moscow Exchange index fell below the 2,400-point mark for the first time since March 2023. At 15:25 Moscow time, the index was at 2383.

According to Zeltser, factors such as tight DCP geopolitical uncertainty, reduce interest in buying stocks. Market participants are opting for money market funds and classic bank deposits, while liquidity for the risk asset market is scarce.

"Maybe this Friday the market will get signals from the Central Bank - the rate will surely be raised, but probably for the last time in this cycle. If so, the idea may be clung to, and the index will finally go into a rebound, which may eventually develop into a recovery in corporate value," Zeltser concluded.

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Earlier, on November 27, Nikolay Vavilov, a specialist in the strategic research department of TR company, told Izvestia that the Mosbirji index by the end of this year may approach the values of October 2022 and show a mark at the level of 2 thousand points. In turn, Ruslan Pichugin, an independent expert in the field of private investments, noted that he expects the index to be above 2.3 thousand points by the end of 2024.