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6 Comments
Global Investors Fleeing Russian Market
The rate of growth of Russian economy about 8%. Confidence in that our investment in Russia will be protected from attacks from outside, was proved just. Partial withdrawal of foreign investors is a good moment because the influence of foreigners on the Russian stock market should be reduced. Now about 50% of the shares on the Russian stock market owned by foreigners. Now solved the question of expanding Russia's investment of pension funds in equities.
Thank YOU americans for selling shares very cheap. We are waiting and buying. Maybe americans must buy a Freddy....its best choice for you. Game over....loosers.
The Georgian Crisis: Impact on ETFs?
Russia: Beware the Bear
below 7.0, investors do yet not see it as a strong buying opportunity. Many have
decided to reassess political risks, though we do not think much has changed; these
risks have been largely ignored in the past.
Russia: Beware the Bear
What is even worse for Russia is the fact that the situation in South Ossetia followed
a chain of other political events that also negatively affected the market, such as the
conflict between BP and TNK in which state authorities also took part, the Mechel
story and Russia’s position on Zimbabwe in the UN Security Council. Almost no
positive news has come from the political arena in recent months, such that until
recently, the Russian market had been falling more or less in line with global trends,
and even a strong macroeconomic performance was unable to pull it back up.
Needless to say, on this front, it looks much better in Russian these days in relative
terms than in the matured economies; the country’s growth of around 8% looks
more impressive than the 1.2% seen in the US and the Eurozone.
Meanwhile, we have to remind that little has changed in Russia itself. The same people keep
governing the country, its diplomacy is the same as a year or two ago, institutions are also in the
same condition, and the economy keeps growing as fast as in previous years on average. If this
(currently) regional conflict does not spread into a greater geopolitical standoff between Russia
and the West, the Russian market should start gradually rebounding at some point.
Russia: Beware the Bear
Russia: Beware the Bear
Yesterday’s (12 Aug) developments appear to have put an end to the military conflict between Russia and Georgia. First, President Dmitry Medvedev ordered a stop to military operations. Later in the day, France’s President Nicolas Sarkozy travelled to Moscow and Tbilisi to negotiate a solution to the conflict in South Ossetia. Sarkozy and Medvedev agreed on six principles: 1) to stop the use of armed forces; 2) to halt all military action; 3) to provide access to humanitarian aid; 4) Georgian troops are to return to their permanent military bases; 5) Russia’s forces are to return to positions occupied before hostilities began and Russia’s peacekeepers are to remain in the disputed territories until international mechanisms are in place; and 6) the status of South Ossetia and Abkhazia is to be discussed internationally. In Tbilisi, Sarkozy agreed on five of the principles with Mikheil Saakshvili (Georgia did not agree to international discussion of the status of South Ossetia and Abkhazia). Further discussions will be held today (13 Aug) at a meeting of EU foreign ministers; any resolution will then be presented to the UN Security Council.
We believe that despite the very possible violation of the ceasefire, attention will now focus on internationally brokered negotiations on the status of the disputed territories, as well as an investigation into the possibility of crimes against humanity committed during the conflict. The situation in the area will remain a source of tension in the medium term, but we think that the worst is behind us.