Investor optimism was not enough for the whole week. After four days of growth on Friday, the Russian stock market went down sharply. At the end of the day the Russian indexes fell by 3-3.5%, eliminating most of the achievements of the previous days. This time, alerted investors to the data on the Chinese economy, which was submitted obvious signs of a slowdown. However, the center remains a concern in the euro zone, whose authorities are not ready for drastic measures to reform the economy.
The optimism that prevailed in the Russian market for almost a whole week, on Friday gave way to a massive sell off of shares. Yesterday the RTS index fell by 3.5% (during the day amounted to 4.6% reduction) - to the level of 1341.09 points. The MICEX index lost 2.9% (during the day it fell to 4.7%) and reached 1366.54 points. Looked worse than the market shares of the companies of metallurgical and financial sectors: common stocks of Sberbank fell 5.7%, "Severstal" - 6%, NLMK - 6.2%. As a result, Friday's decline undermined the achievements of previous four days. At the end of the week the RTS index added just 1.7% and the MICEX index rose by 2.8%. As a result, Russian stock indexes were again among the outsiders among stock indicators developed and developing countries. Leading Asian indices rose last week to 4.5%, European - at 4.5-5%.
A new reason for the sale of Russian assets was compiled on the Chinese economy. According to director of asset management department of the Criminal Code "Alfa Capital" Victor Barca last two months, a ground for withdrawal of investors from the risk of an economic slowdown, there were fears the United States and Europe. "Now they added in China, where the third consecutive month continuing decline in industrial production", - said Victor Burk. According to HSBC, Purchasing Managers' Index (PMI) for the manufacturing sector amounted to 49.9 points in September, unchanged compared to August. Thus, the third consecutive month the index was below 50 points separating the industrial production growth from contraction. "In such circumstances, investors have overestimated the growth rate of the global economy, which adversely affects the prices of the commodities market" - said the portfolio manager of the company "Alliance ROSNO Asset Management" Timur Salikov. During yesterday's trading price of North Sea Brent crude on the spot market dropped by 3.7% - to $ 106.7 per barrel, Russia's Urals - 3%, to $ 102.7 per barrel. At the same time in many months on Friday reached a minimum price for non-ferrous metals: nickel fell to $ 17.6 thousand per ton, aluminum - up to $ 2.2 thousand per ton, copper - up to $ 6.9 thousand per tonne.
This has already led to a reduction of investment attractiveness of countries with commodity-dependent economies, including Russia and Brazil. According to Emerging Portfolio Fund Research (EPFR), last week (from 21 to 28 September), investors continued to withdraw funds from the commodity economy: Russia's funds lost $ 443 million, the Brazilian - $ 75 million And Russian funds are losing money the 12th consecutive week, During this time customers withdrew nearly $ 3 billion, "Because of the raw materials sector, cycling and low diversification of the Russian economy remains highly dependent on the macroeconomic situation - said the portfolio manager of the Criminal Code," Capital "Olga Izyumova .- Therefore, in a recession the world economy, any increase in stock market is regarded by investors as an opportunity to get out of Russia. "
Changes in investor sentiment, market participants in the near future do not see why the outflow of funds from the Russian market will continue. According to a senior portfolio manager of the company "Renaissance Asset Management" by Alexander Krapivka in the center of concern is Europe, where everything is smooth in name only - until the adoption of measures to "tighten control over spending" and "save bad debtors." "When it comes to putting these measures into practice, the situation is considerably complicated," - stressed Mr. Krapivka. The main problem is that the measures that might actually help solve the problem of debt, yet still look acceptable for governments and regulators. "The bad news is that the situation is still severe enough that regulators were ready to propose drastic measures problem-solving, rather than just shifting them to a later date", - said Victor Burk.
The optimism that prevailed in the Russian market for almost a whole week, on Friday gave way to a massive sell off of shares. Yesterday the RTS index fell by 3.5% (during the day amounted to 4.6% reduction) - to the level of 1341.09 points. The MICEX index lost 2.9% (during the day it fell to 4.7%) and reached 1366.54 points. Looked worse than the market shares of the companies of metallurgical and financial sectors: common stocks of Sberbank fell 5.7%, "Severstal" - 6%, NLMK - 6.2%. As a result, Friday's decline undermined the achievements of previous four days. At the end of the week the RTS index added just 1.7% and the MICEX index rose by 2.8%. As a result, Russian stock indexes were again among the outsiders among stock indicators developed and developing countries. Leading Asian indices rose last week to 4.5%, European - at 4.5-5%.
A new reason for the sale of Russian assets was compiled on the Chinese economy. According to director of asset management department of the Criminal Code "Alfa Capital" Victor Barca last two months, a ground for withdrawal of investors from the risk of an economic slowdown, there were fears the United States and Europe. "Now they added in China, where the third consecutive month continuing decline in industrial production", - said Victor Burk. According to HSBC, Purchasing Managers' Index (PMI) for the manufacturing sector amounted to 49.9 points in September, unchanged compared to August. Thus, the third consecutive month the index was below 50 points separating the industrial production growth from contraction. "In such circumstances, investors have overestimated the growth rate of the global economy, which adversely affects the prices of the commodities market" - said the portfolio manager of the company "Alliance ROSNO Asset Management" Timur Salikov. During yesterday's trading price of North Sea Brent crude on the spot market dropped by 3.7% - to $ 106.7 per barrel, Russia's Urals - 3%, to $ 102.7 per barrel. At the same time in many months on Friday reached a minimum price for non-ferrous metals: nickel fell to $ 17.6 thousand per ton, aluminum - up to $ 2.2 thousand per ton, copper - up to $ 6.9 thousand per tonne.
This has already led to a reduction of investment attractiveness of countries with commodity-dependent economies, including Russia and Brazil. According to Emerging Portfolio Fund Research (EPFR), last week (from 21 to 28 September), investors continued to withdraw funds from the commodity economy: Russia's funds lost $ 443 million, the Brazilian - $ 75 million And Russian funds are losing money the 12th consecutive week, During this time customers withdrew nearly $ 3 billion, "Because of the raw materials sector, cycling and low diversification of the Russian economy remains highly dependent on the macroeconomic situation - said the portfolio manager of the Criminal Code," Capital "Olga Izyumova .- Therefore, in a recession the world economy, any increase in stock market is regarded by investors as an opportunity to get out of Russia. "
Changes in investor sentiment, market participants in the near future do not see why the outflow of funds from the Russian market will continue. According to a senior portfolio manager of the company "Renaissance Asset Management" by Alexander Krapivka in the center of concern is Europe, where everything is smooth in name only - until the adoption of measures to "tighten control over spending" and "save bad debtors." "When it comes to putting these measures into practice, the situation is considerably complicated," - stressed Mr. Krapivka. The main problem is that the measures that might actually help solve the problem of debt, yet still look acceptable for governments and regulators. "The bad news is that the situation is still severe enough that regulators were ready to propose drastic measures problem-solving, rather than just shifting them to a later date", - said Victor Burk.
No comments:
Post a Comment