Wednesday, June 1, 2011

Russian assets are losing their popularity?

Last week, foreign investors are attracted to Russia far more money than in countries BRIC, but these figures were five times less than they were in the spring. So, according to Emerging Portfolio Fund Research, in the past week in our country attracted $ 80 million, a week earlier loss of $ 77 million in the same time, Chinese funds lost almost $ 200 million, while the Brazilian and Indian funds have attracted only $ 11 million and $ 15 million, respectively, , writes Kommersant. The popularity of domestic assets by experts associated with their fundamental undervalued. However, investors prefer not to take risks and invest in short-term, carefully choosing the time to market. At the same time, analysts say, in separate weeks in the spring inflow was much more than now. Then the amount of involvement could be $ 350-400 million! According to Wikipedia, in March 2010, total accumulated foreign investment in the Russian economy amounted to $ 265.8 billion! Moreover, 53.8% were other investments made on a return basis, 38.7% - direct investment, even 7,5% - portfolio investment. Market specialists believe the long-term funds have actively participated in the auction in early spring, when the market was full. The same thing happened in 2009 when the international respondents believed that Russia would become an emerging market, offering the greatest number of opportunities for private equity in 2009, then regarded as 73%. As a result, in late 2009, the volume of accumulated foreign investment in Russia was 19 th place in the world. At the moment the situation is little changed. Experts believe that investment activity will remain low until at least mid-September. Moreover, in their opinion, similarly, albeit in smaller amounts, act and Russian shareholders of mutual funds. Now, however, can only wait for what will happen to the market, and what new signals it receives.

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