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  8.3 Stock market
8.3.1 Equity market dynamics
    A pre-Geneva summit rally saw a record 36 weeks straight of inflows that came to an end on June 17. Russia dedicated funds reported net outflows of c$20mn in the week ending June 17 as investors took profits after a strong rally.
Russia’s equity market rallies are very seasonal. Traditionally the market rallies in the spring, gaining some 20%, but then goes quiet over the summer months until the autumn rally starts again in around September in the so-called “Santa Rally”.
The dividend season is also underway, with many Russian companies recording record payouts that will run through to August, after which there is also usually a lull before the cycle repeats. As Russian companies are currently earning their strongest profits in five years and most of those profits will be paid out next summer, analysts are speculating that the Russian market will rally again in a second cycle beginning in the autumn and running through to next spring based on this year’s strong earnings.
GEM equity funds posted their first net outflow since September 2020, of $177mn. Thus the longest streak of inflows into GEM equity funds in history
 98 RUSSIA Country Report July 2021 www.intellinews.com
 



























































































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