MICEX Official Criticizes Insignificant Role Of Stock Market In Providing Investments To Russia's Industries

Only 3 per cent of investments in Russia's industries come via the stock market by issuing new securities, Alexander Sarchev, deputy director general of the MICEX exchange, reported at a press conference 'Russian Financial Institutes' today. He stressed that the capitalization of the Russian stock market remains very low - only about $60 billion - and this can be compared to the capital of several US corporations. In addition, only about 10 blue chips are traded on Russian stock exchanges. The MICEX official stressed that measures should be taken to develop the domestic stock market. These should be tax measures to stimulate investments in the Russian stock market, the introduction of public issues of shares and maintaining high standards of corporate management. In addition, the development of the stock market can be promoted by the introduction of real estate securities. According to Sarchev, investments in these securities are estimated at $20 or 30 billion. However, this measure would require some changes in Russian legislation.