Poll: Shall Russia stock resume trading, will you be interested?
Ever since the war started in Ukraine, Russian stocks have been excluded from global benchmarks and exchange-traded funds $VanEck Vectors Russia ETF(RSX.US$ tracking the country's shares have been frozen. Value of Russian companies' global depositary receipts has nearly been wiped out as more than 95% before being halted.![]()
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How did the market do since its reopenning?
Russia is taking small steps to reopen its equity trading after suspending it from Feb. 28 after the nation was hit with unprecedented sanctions, spanning everything from its ability to access foreign reserves to the SWIFT bank-messaging system.
Many analysts believe the current price movement of Russia's Moex index is not reflecting the actual market sentiment. Russian government has adapted the following measure to maintain its stability.![]()
1. the government announced that as much as $10 billion from the National Wellbeing Fund may be spent to buy battered local stocks.
2. the government will prevent foreigners from exiting local equities.
3. the government will ban short selling.
Analyst's point of view
Russia effectively closed up a free-flowing market, activity will be muted and true price discovery won't occur.
said Hank Tsai, senior trader at AP Capital Investment.
said Hank Tsai, senior trader at AP Capital Investment.
local investors could flock to Russian equities as a hedge against inflation, which has surged near levels unseen since the government's debt default in 1998.
Iskander Lutsko, chief investment strategist at ITI Capital in Moscow said
Iskander Lutsko, chief investment strategist at ITI Capital in Moscow said
the Moscow Exchange said the share of individual investors in Thursday's trading volume was 58%.
History
Warren Buffett avoids making equity investment in Russia because he has experienced threats of violence and asset seizure there. Buffett remembered trying to exit from the region. "They said if we sent in the people to get out the equipment, not only would the equipment not get out, but the people wouldn't get out," he said. Charlie Munger also underlined his concern of Russia during Daily Journal's annual meeting this month.
The intelligent investor should recognize that market panics can create great prices for good companies and good prices for great companies.
Benjamin Graham
Benjamin Graham
The Russian stocks should be extremely volatile, considering how much risk is associated with it. Will you be interested in the Russia ADR if it's ever available to the international investors again?![]()
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Source: Bloomberg
Source: Bloomberg
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Revelation 6 : No, Russia has screwed itself to the world. It will not return as a world power in my lifetime. Putin in his overreaching ambitions have doomed the Russian people to poverty and hardships that that have not experienced it their lifetime. I am staying clear of all Russian investments and it won’t be long I fear before Chinese investments go the same way. I hope China opens it’s eyes before it’s to late. Just saying.
mccoylim : A definite NO
Odane Thompson : Yoo
Hippopotamus : like
cleef : Have never traded russian stocks. However i wish they will be isolated from the rest of the world to pay for the war
CitadelAir : Buy the dip. Don’t care about politics.
Macinator1171 : NO.
Hani Ayyash : Hell yes. Buy the DIP and get ready for the RIP. F*ck politics. Let's make some moneyyyyy
Hani Ayyash Macinator1171:
Hani Ayyash cleef:
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