Page 70 - RusRPTSept20

“Russia sentiment was also strong until news of Navalny’s alleged poisoning. We see risks to the Russia case as a result and refrain from a positive tactical view for now,” BCS Global Markets said in a note.
EPFR Global released fund flows data showed Russian assets enjoying an inflow of c$110mn from combined equity and bond fund flows in the reported week versus c$40mn in the previous week.
Russian private retail investors are actively participating in mutual and collective investment funds in 1H20, Vedomosti daily reports on August 18 citing the data of rating agency Ekspert RA.
The market showed growth of 5.4% year to date to RUB8.5 trillion ($116.1bn) as of end 1H20, with retail investors being the main contributors across all segments (RUB124bn inflow in managed funds, RUB103bn in mortgage funds, RUB93bn in mutual funds). Negative dynamics were seen in pension and insurance funds.
As reported by bne IntelliNews, since the beginning of 2020 Russia has seen a surge in retail investors taking an interest in equity trading, and it invited regulatory scrutiny from the central bank.
Analysts surveyed by Vedomosti commented that lower ruble deposit rates have pushed retail investors towards managed investment funds, quasi- deposit investment products such as bonds, and instruments with yields pegged to the US dollar and other currencies.
The analysts also suggested that many retail investors had free time to study investment apps and other online investment services in the lockdown. The brokers were quick to adapt and accommodated new clients online and long- distance.
The trend for more funds inflow could continue for another 12 to 18 months, as long as the key interest rate remains below 6-7%, Yury Nogin on the National Rating Agency suggested to Vedomosti.
The Moscow Exchange (Moex) reported trading statistics for July 2020, showing a decline in average daily trading of equities by 23% month on month, but still up by 34% in year-on-year terms and up by notable 109% y/y for 7M20 overall.
As reported by bne IntelliNews, Moex posted record-high trading volumes and solid financial results in 1Q20, as investors panicked owing to the coronavirus (COVID-19) pandemic and drop in oil prices.
For fixed income instruments the trading volume declined 22% m/m but was up 23% y/y in July and up 17% y/y in 7M20. Money market volumes grew 3% m/m, 33% y/y and by 23% y/y in 7M20.
Foreign currency trading volumes were flat m/m and down 3% y/y in July and flat y/y in 7M20, while trading in derivatives declined 12% m/m but increased by 43% y/y in July and by 59% y/y in 7M20.
"July saw a further decline in trading volumes from the phenomenal highs of March and April, as equities, fixed income and derivatives declined m/m, the FX segment was flat and money market volumes were up just 3%," Sberbank CIB commented on August 5.
BCS Global Markets on August 5 also noted normalisation in traded volumes, which returned to May’s levels, still seen as high, with the figures for 7M20 remaining solid.
70 RUSSIA Country Report September 2020 www.intellinews.com