VTB My Investments Updates Top 10 Russian Shares, Adds Nornickel and Drops Polyus

Analysts at VTB My Investments have revised their list of the top 10 shares of Russian companies, adding shares of Nornickel and excluding those of Polyus. According to the broker's latest report, the current composition of the top list includes: Nornickel, Gazprom, Astra Group, Rusal, LUKOIL, ALROSA, Moscow Exchange, Headhunter, Yandex, and Sberbank.

The decision to add Nornickel shares comes in anticipation of potential economic stimulus measures from China, according to Stanislav Kleshchev, investment strategist at VTB My Investments. Kleshchev noted that Nornickel is currently trading at a free cash flow yield of 15%, and with expected growth in the prices of metals produced by the company by 30-40%, the yield could increase to 35-40%. Under such circumstances, there is a high probability of a return to dividend payments by the company.

On the other hand, the exclusion of Polyus shares follows a correction in the gold market after the recent US elections. Kleshchev mentioned that expectations of reduced geopolitical risks could put downward pressure on gold prices in the coming months, making Polyus less attractive to investors at this time.