The iShares MSCI Russia Capped Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI Russia 25/50 Index.
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Friday, May 17, 8:50 AM
Russia's economy expanded by 1.6% in Q1 (consensus was for 1.2% growth), marking the fifth straight quarter of decelerating growth. As in Japan, business investment is weakening even as private consumption remains steady. The problem: demand for commodity exports from the world's largest energy exporter is flagging amid a seemingly intractable recession in the eurozone — the currency bloc accounts for ~50% of Russian trade. Russian stocks (RSX), which are the cheapest among 21 EMs according to Bloomberg, are trading 1.8% higher but are still off ~5% YTD.
1 Comment[Global & FX]
Monday, April 8, 3:17 PM
VelocityShares launches 3 emerging market ETFs comprised exclusively of depository receipts (DRs) listed in developed countries. The funds cover broad Emerging Market DRs (EMDR), Emerging Asia DRs (ASDR) and Russian DRs (RUDR). By sticking to DRs, the 3 new funds are far more concentrated in their holdings than existing ETFs in the space (example, EMDR has 305 holdings vs. 1,280 for IEMG). The 0.65% charged by the funds means they're generally pricey relative to established competitors like IEMG/VWO (0.18%), EEM (0.66%), SCHE (0.15%), GMF (0.59%), RSX (0.62%) and ERUS (0.60%).
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Tuesday, April 2, 7:36 AM
Moody's places 6 Russian banks on review for downgrade as it assesses the willingness of the government to provide systemic support in case they need it. At issue is the price of oil - the government needs $100 crude to break even, making suport of the banks in a crisis susceptible to a break in oil prices.
Comment![Global & FX]
Wednesday, January 16, 3:00 PM
With many betting on lower Russian interest rates next month, the central bank may actually decide to hike. That's the takeaway for some after the bank removed wording from its policy statement suggesting the current rate regime is adequate. Key is inflation, which has edged up to 6.8%. If it gets over 7%, rates might be hiked. RSX is flat YTD.
2 Comments[Global & FX]
Thursday, December 27, 2012, 8:18 AM
Russian manufacturing flattens out, its December PMI falling to 50 from 52.2 previously. It's the steepest one-month decline in four years and ends a 14-month run of expansionary readings. "Growth momentum suddenly deteriorated amid a sharp fall in external demand," says HSBC.
Comment![Global & FX]
Friday, December 7, 2012, 7:28 AM
Apparently Russia isn't as hot an investment idea as some think - Credit Suisse and Sberbank cancel plans for a $1B P-E fund in the country due to a lack of investor interest. Both lenders (Sberbank is Russia's largest) had planned to contribute $100M and raise the rest from others. RSX +6.7% YTD.
1 Comment[Global & FX]
Wednesday, December 5, 2012, 3:57 PM
Jim Rogers turns bullish on Russia (RSX) for the first time in his career, believing Putin and the government have changed, and the country's gigantic potential is set to be realized. Of note are transportation routes, which could save time and money in getting goods to Asia by land rather than by ship. "It would ruin Singapore."
4 Comments[Global & FX, Quick Ideas]
Tuesday, November 13, 2012, 10:15 AM
A plan to open up Russia's bond market to international investors is set to become operational in January, according to the Micex. To call Russia's debt market "underdeveloped" is an understatement: Non-residents make up aout 7% of the business, well below any other EM you can name. The flows, says SocGen, should be bullish for all Russia-related assets.
1 Comment[Global & FX]
Thursday, October 25, 2012, 11:28 AM
Russia's move to open up its capital markets is a game-changer, says SocGen, bullish on the local bond market, the ruble, and Russian equities (RSX). The bank sees inflows of $30B-$40B into the bond market once the measures take concrete shape later this year (vs. total foreign holdings of just $6.6B now).
Comment![Global & FX, Quick Ideas]
Thursday, September 13, 2012, 9:53 AM
The Bank of Russia surprises consensus of steady policy with a 25 basis point hike in its benchmark rate to 5.5%. The bank notes the 6.3% rate of inflation is above the 2012 target range, and may be set to go higher. Not mentioned in the statement, the bank must surely be aware of the boon to economic growth coming from high oil prices.
Comment![Global & FX, Energy, Breaking News]
Wednesday, August 29, 2012, 3:39 PM
A Romney victory could knock 5-10% off the Russian market, opines Citi as he is likely to take a more aggressive stance towards the country, provoking Russia to respond. Additionally, Romney seems more likely to move towards increasing domestic production of crude oil, lowering demand for Russia's key export. RSX +3.1% YTD.
7 Comments[Global & FX]
Thursday, August 9, 2012, 7:54 AM
Riding oil prices which have quietly moved to the highest since the spring, Russian shares (RSX) gain again, the Micex hitting a 3-month high. The Micex trades like an oil major, boasting a PE ratio of just 5.4X vs. a 10X multiple for the MSCI Emerging Markets Index (EEM).
Comment![Global & FX]
Tuesday, July 10, 2012, 7:59 AM
Moscow's stock exchange moves to attract foreign investors with listing reforms and new measures on trading infrastructure, including removing the requirement that investors must pre-fund their brokerage accounts ahead of trading. Micex +0.9%
Comment![Global & FX]
Thursday, May 31, 2012, 12:59 PM
More on the fund manager survey: Money flowing out of Brazil is moving elsewhere in Latin America as fund managers are overweight Chile, Mexico, and Colombia. Also popular are Taiwan and India. Countries underweight: China, Thailand, Russia South Korea, and Turkey.
Comment![Global & FX]
Thursday, April 26, 2012, 12:31 PM
A "green cloud" over Moscow that caused a bit of angst and unconfirmed reports of evacuations turns out to be pollen, and not the result of an accident at a chemical plant, reports Interfax.
Comment![Global & FX]