18
September
2012
IFC METROPOL held a conference for investors
On 13-14 September 2012, IFC METROPOL organized the first annual
conference for investors: “Beyond the Blue Chips: Growth and Value
in Russian equities.”
The main objective of the Conference is to open up opportunities
for the top managers of the leading Russian small and mid-equity
companies to tell investors about their market strategies, growth
potential and risks. The conference focused on two areas that
would, in the long run, drive investors’ interest in Russia –
growing domestic demand and infrastructure development.
Each day of the conference was opened with a plenary session
that included presentations by stock market experts, followed by
meetings of issuers and investors in the “face-to-face”
format.
Issuers were invited to the conference whose activities most
representatively demonstrate the potential of the sector in which
they work: Bank Saint Petersburg, Nomos-Bank, RBC Holding, Group
COX, M.Video, PIK Group, UTair, Rusagro, Globaltrans, Mostotrest,
Transcontainer, Sollers, HMS Group, Kuzbass Fuel Company, Nakhodka
Active Marine Fishery Base, IDGC of Center, IDGC of Center and
Volga region, IBS, Raspadskaya, Steppe Cement and Cherkizovo.
The conference attracted more than 60 investors representing
management companies, funds, banks, such as Troika Dialog,
Centrokredit Bank, CJSC Transfingrup, Bank Zenit, MC BCS, Softline,
Capital Growth Russia Fund, VTB Capital, MC Uralsib, Metropol
Global Partners Fund, Inventum Fund, East Capital, Danske Capital,
NCH Advisors, and others. During the two days of the conference,
over 200 meetings were held, in which each investor was able to
meet the issuer of its interest.
On the first day, September 13, the plenary session was opened by
Chief Executive Officer of IFC METROPOL Alexey Rodzyanko. He spoke
about his expectations of the Russian stock market and stressed
that during and after the crisis Russian companies had dropped out
of the spotlight of portfolio investors as risky assets. Small
second-tier companies were affected the most. Their quotes are
falling faster, while growing slower. This gap creates a potential
that will be realized in the near future, when the market is more
optimistic. He added that the IFC METROPOL conference is intended
to draw the attention of investors to such companies.
The next speaker was Anna Kuznetsova, Managing Director of the
Moscow Stock Market Exchange. She described the already completed
and ongoing projects on the site, aimed at creating more
comfortable conditions for stock trading, including companies with
low capitalization. After her speech, several investors asked Ms.
Kuznetsova questions.
Analytic Department Director of IFC METROPOL Mark Rubinstein
also gave an opening speech. He said: “The greatest growth
potential is seen in small and mid-cap companies. This segment is
key for our company; we are the leading experts in it and have one
of the most extensive research coverage of the market, to ensure
that our customers know and understand the sector well. The most
interesting investment topics in the sector are domestic demand and
infrastructure. We are confident that the popularity of these
issues will increase over time. The Russian market looks much
cheaper than its counterparts because of political risk perception.
We expect that this perception will gradually decline, and the
lower the discount is, the closer to its peers the market
assessment will be.”
Deputy Chairman of Central Bank Mikhail Sukhov also attended the
first day of the conference. He spoke about the situation in the
banking sector and the prospects for its development, stressing
that the banking sector shows high profitability and is quite
attractive for investors.
On 14 September the prospects for the growth of infrastructure
industries were discussed. The plenary session was opened by
Nikolay Osadchy, Head of Metal Courier. He described the situation
in the steel industry, the trends and the companies that are the
most attractive for investments, and presented forecasts of the
industry dynamics.
In its report on the second day of the conference, Mark
Rubinstein reiterated that the overall Russian market growth would
outperform its counterparts. Small and mid-cap companies, in turn,
will be ahead of the market average. This statement was illustrated
by comparing the indices of small and mid-cap companies with
average market indices in times of rapid growth of the market in
the near past.
The conference participants continued the discussion in the
lobbies. In general, they appreciated the relevance of the event
and its topics. IFC METROPOL plans to hold a conference for
investors every autumn, at the beginning of the business
season.
Alexey Rodzyanko, Chief Executive Director of IFC METROPOL,
and Anna Kuznetsova, Managing Director of the Moscow Stock Market
Exchange, on the conference opening day
Anna Kuznetsova’s speech
At the plenary session
During the round table discussion, participants touched upon
all the relevant issues
Report by Mark Rubinstein, Analytic Department Director of
IFC METROPOL
Report by Nikolay Osadchy, Head of Metal Courier
In the intervals between the meetings, the participants had
the opportunity to talk informally. Mark Rubinstein, IFC METROPOL,
and Konstantin Noskov, Bank Saint Petersburg
