Page 99 - RusRPTJul21

that lasted 36 consecutive weeks and resulted in a combined money intake of $70bn has officially ended.
The Russian market gained 19% YTD in the rally as of June 18, with the banking sector stocks up over 50% in the first five months of the year, although those pulled back by 3pp in the last week as investors took some profits.
Likewise, oil and gas stocks have rallied by 24% this year as of June 18 and gained another 1pp in the last week as oil prices continued to rise to top $73 by the end of this week.
Metals and mining stocks were up 23% as of the end of last week on the back of a commodity price boom, but the sector fell back by 5pp in the last week, as this was the sector where investors took the most profits, and it had returned 16% YTD as of June 18.
“The Summit rally is behind us, and what’s more important the global EM sentiment shows first signs of reversal – downside risks prevail now, negative,” says Slava Smolyaninov, head of strategy at BSC GM.
Investors usually spend the summer months on the sidelines until September when the Santa rally gets underway and can return some 20% through to the end of the year. As Russian corporates have been earning very strong profits and those will be paid out as dividends next summer, analysts expect this year’s Santa rally to be strong and sustained until Easter next year.
99 RUSSIA Country Report July 2021 www.intellinews.com