Unveiling the Impact of "Power of Siberia"

In the financial world, September 2021 saw a mix of ups and downs, with some sectors performing better than others.

Alexei Kornilov, an investment strategist, decided to part ways with Gazprom shares, placing them outside the top 10 most attractive stocks. The reasons for this sell-off include concerns about significant capital expenditures for the construction of the "Power of Siberia - 2" gas pipeline and lower gas supply prices to China.

However, the picture on the bond market was different. Money market yields and bond yields showed stable downward dynamics, although they remained high. Long-term yields even fell to levels below 14%, indicating a restoration of investor confidence and the formation of a new base for a downward movement in yields.

The Moscow Exchange Index, on the other hand, had a somewhat turbulent September. It started the month on a downward trajectory, falling by 1.9% in the first two days, but then recovered and ended the five-day period with a 0.1% gain. The Index of Moscow Exchange government bonds also experienced a reversal, rising by 1.6% over the five days after eight sessions of continuous decline.

The expert community's views on the forecast of the interest rate change in September were mixed. A significant portion of financiers believe that market expectations of a 2% rate cut were too optimistic, and they expected a 1% reduction in the key rate. This sentiment was influenced by the statement of the Deputy Chairman of the Central Bank, Alexei Zabotkin, that prematurely lowering the key rate could lead to additional budget expenses and accelerate inflation.

Investor sentiment was also influenced by the economic outlook. Nikita Bredikhin, a leading investment analyst, commented that the pace of economic growth is slowing down and inflation is also slowing down steadily, which opens up room for a rate cut. He further noted that stocks are currently attractive for purchase, as prices do not yet reflect potential rate cuts and possible ruble weakening.

Meanwhile, in the world of entertainment, Mikhail Shufutinsky held a solo concert at the Kremlin Palace on September 3, 2021, and the song "3 сентября" by Igor Krutoy, with lyrics by Igor Nikolaev, was performed during the concert.

Despite the ups and downs, the overall trend in bond yields suggests a stabilising market, while the outlook for stocks remains promising due to potential rate cuts and currency fluctuations. The investment analysis institution that includes Gazprom in the Top-10 most attractive stocks and justifies its position could not be identified explicitly in the provided search results. However, it is clear that the investment landscape in September 2021 was marked by a blend of economic factors and geopolitical influences.