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Nonresident Investors to Pull Out Money of Russia
Even if they haven’t set the process into motion yet, nonresident investors will soon start withdrawing money from Russia’s assets, RBC Daily forecasted, drawing attention to the situation on the interbank and foreign exchange markets of the country.
JP Morgan poured oil on flames yesterday when it downgraded Russia’s score to below the market level. The news triggered the decline of Russia’s benchmarks, nearing them to the lowest values of the year.
It was President Dmitry Medvedev who stepped it to contain the slump. When meeting with Sberbank CEO German Gref, Medvedev spoke of the excellent potential of Russia’s stock market should the business of companies be transparent and clear.
The statement of First Vice Premier Igor Shuvalov has also inspired some optimism. The probability that Mechel would repeat the Yukos destiny was very low, Shuvalov said.
Russia’s market is very cheap after the slump of a few days, the analysts speculate, pointing out, however, that the investors’ return to the market is conditioned to Mechel’s events.
Notwithstanding the expert opinion and the statements of Russia’s leadership, Sobinbank has downgraded the annual target for RTS benchmark from 3,000 to 2,300. “We expect the situation around Mechel to develop a long while, preventing Russia’s equities from bringing into effect the fundamental potential his year. Political risks will dominate over corporative profits,” people in the bank said.
www.kommersant.com
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