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Russia's main stock exchange has also approved a new strategy
for the five-years to 2024, including longer trading hours and
an expanded range of products and services.
The five-year plan, designed to ensure at least a 10% annual
commission fee growth, will also improve the cyber stability of
the exchange's key systems.
"Our main goal is to maintain the reliability of our systems in
line with the best industry standards and satisfy the needs of
our customers," the head of Moscow Exchange Yury Denisov told
reporters when presenting the new strategy.
The Moscow Exchange plans to double its retail investor base
from the current 3 million people in the next five years, said
Denisov, who took over as CEO in May 2019.
The exchange said it would continue paying dividends on an
annual basis.
This has disappointed hopes of some analysts', particularly VTB
Capital, for interim dividends. BCS Brokerage also said earlier
that an interim dividend payout would have a positive impact on
the Moscow Exchange shares.
"The new dividend policy has been designed to balance long-term
growth and financial stability with the continued strengthening
of the investment case," Oleg Vyugin, Chairman of Moscow
Exchange's Supervisory Board said in a statement.
MOEX shares rose 1.9% on the day to 91.39 roubles each, their
highest since Oct. 7, following the announcement on the new
strategy.
The bourse's free cash flow, seen as a measure of profitability
in financial analysis, takes into account investments needed to
maintain and expand its business, as well as regulatory
requirements applicable to the Moscow Exchange and its
subsidiaries.
Retail investors have been attracted to the Moscow Exchange as
its key rouble-denominated index MOEX <.IMOEX> has climbed by
about 15% so far this year and the average dividend yield of
stocks traded on the exchange is at 7%, above an average deposit
rate for banks, the Moscow Exchange said.
The central bank is the largest shareholder of the Moscow
Exchange with around an 11.8% stake, followed by the country's
largest lender Sberbank <SBER.MM> with about 10%, according to
the Moscow Exchange data.
(Reporting by Andrey Ostroukh and Elena Fabrichnaya; Writing by
Anna Rzhevkina; Editing by Jane Merriman)
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