Bear Stearns Upgrades Score of Russia’s Corporate Stocks
Analysts of one of the world biggest investment banks, Bear Stearns, have upgraded the score of Russia’s stocks on decline in political risks in the country. But the inflow of investors could be expected no sooner than by the year-end, the market players speculate.
On Tuesday, one of the global bank blockbusters, Bear Stearns, upgraded the score of Russia’s stocks to the level of above the market average. The rating improved on decline in political risks, continued economic growth and Putin’s resolve to play a decisive part in the country’s life even after the presidential elections of March 2008.
Everything has changed once Putin announced the intention to head the slate of United Russia’s candidates. Quite a few investors saw continuity of the course in that decision, which triggered the growth, explained Renaissance Capital analyst Ovanes Oganesyan.
Once the market got the buying signal, the biggest capital banks started declaring better attractiveness of Russia’s stocks. Deutsche Bank, Citigroup, Goldman Sachs have revised their attitude, driving up the investing spirit. As a result, the RTS benchmark soared 12 percent since early October.
Nevertheless, the optimism of the Bear Stearns analysts didn’t suffice for prolonged advance. The statements of financial institutions about more losses caused by the mortgage crisis led to adjustment in Russia.
The market ignored the good news yesterday. MICEX closed 1.69 percent down and RTS sank 1.3 percent. The positive response to improved attitude of Bear Stearns is expected closer to the year-end, when the foreign capital funds set to forming new portfolios.
www.kommersant.com
All the Article in Russian as of Nov. 22, 2007
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