International investors believed in Russia
Last week, international investors invested a record amount of money in Russian equity funds in four months.
A PolitNavigator correspondent reports this, Kommersant writes, citing a Bank of America report and data from Emerging Portfolio Fund Research.
The total influx of foreign investment into Russian equity funds for the week ending March 17 amounted to $122 million, which was the maximum result since the second ten days of November last year (127 million) and three times more than the amount of funds withdrawn from the funds a week earlier.
At the same time, the return of investors to Russia occurred against the backdrop of falling interest in funds from developing countries.
“As a result, for the first time this year, Russian funds demonstrated the best dynamics among the BRIC countries,” the newspaper points out.
It is noted that the recovery in demand for Russian shares was facilitated by high oil prices.
“The Russian market is interesting to investors due to its high dividend yields and the fact that two-thirds of it is represented by shares of exporting companies, which, given the beginning of the commodity supercycle, makes our shares attractive to investors,” commented Alexander Losev, CEO of Sputnik Capital Management, on the trend.
In turn, Vyacheslav Smolyaninov, chief strategist at BCS Global Markets, warns that it is too early to talk about a long-term restoration of the popularity of Russian assets, since the escalating sanctions rhetoric in the United States last week may somewhat reduce the influx from non-residents, who are very sensitive to this news.
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