Whoa! The RTS is booming today. From the Financial Times:
Yet one market has outperformed all others. Russian equities have more than doubled since they touched lows in January – gaining particular momentum since the return of risk appetite at the start of March.
Since March 1, the dollar denominated RTS index has risen 90 per cent. This compares with a rise of 30 per cent on the S&P 500, the US benchmark stock index, and 25 per cent on China’s Shanghai Composite index, the biggest emerging market index, over the same period.
What on earth is going on here? Oh yes… such short memories we have.
Worries over Russia’s unpredictable politics have also been largely shrugged off by investors intent on taking advantage of the rally. Geopolitical squabbles with Georgia and Ukraine and doubts over corporate governance and the rule of law have mostly been forgotton – for the time being.
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5 Comments
now this is just terrible. no matter how good the news is, Russia’s haters still doesnt seem to run out of rhetorics to discredit their positive achievements. Maybe because a stonger russian economy is what they fear most.
Why should anyone fear a stronger Russian economy? It doesn’t really work to defuse concerns and criticism about Russia’s intentions by obliquely referencing the threats of what is to come. This is the kind of nationalism that sows even greater distrust.
Um, hate to burst your bubble Junichiro, but the Russian stock market is worth less than half what it was a year ago. If a market is worth 100, drops to 2 and then rises to 4, it has 100% growth, but it’s still garbage.Moreover, you seem ignorant of the fact that recent data clearly shows Russia’s market is totally enslaved by the price of oil, which it rises and falls in lock step with. Russia doesn’t control the price of oil, so it’s whole economy is out of its control.Wages have plummeted, jobs have plummeted and prices are soaring in Russia. If you think it’s doing well, you have your head in the sand — and I’d be willing to bet you won’t put your money were your mouth is by plonking your savings into the Russian market for the long haul.
I don’t think anybody is afraid of a stronger Russian economy. Speaking for myself, I am simply afraid of the fact that Russia is not basing her economy on anything more solid than the price of oil and gas (and of non-nuclear weapons) — thus far. This is not good for Russia in the long run, even if now and then the market may give her a good time by raising the price of these natural resources.The news is good, Junichiro. It’s just that it’s good news within an economy that is still too dependent on external variables like the price of oil.
ah La Russophobe. I have to admit I wasnt really expecting a reply from a biased lunatic. as expected, you make so much dubious and astonishingly exaggerated claims while at the same time fails to back them up with reliable materials. Why don’t you start revealing your true identity to the public instead of cowering behind the alias Kim Ziegfeld?