The Impact of News on Investor Sentiment and Russian Stock Market Movement

The most complex factor from the point of view of forecasting the movement of the market was and still is the psychology of its participants. The number and speed of information available to the investor are increasing every day, and even for professionals it is becoming more difficult to react to it quickly and efficiently. In addition, there is an increase in the share of non-professional investors on the Russian stock market, crisis phenomena in the Russian economy and tensions in the international political arena. All this makes the stock market even more receptive to the emotional, rather than the fundamental, content of the news. For this reason, studies devoted to studying the factors influencing the mood of the investor and his decisions come to the forefront. One of the solutions to this problem can be sentiment analysis of news. How exactly do financial news affect the emotions of investors? What is the contribution of Russian and world, branch-specific and macro news into the dynamics of the Russian stock market? These questions are among the most acute for practitioners and finance theorists, which determined the choice of the research topic. Solution to those answers can be found using the sentiment analysis of the index of the oil and gas industry of the MICEX.