Page 10 - RusRPTJan21

Another feature of the inflows is that they are mainly into equities, not bonds. As bn​e IntelliNews​ reported a so-called​ ​Santa Rally​ seems to have begun in Russia, the traditional appreciation of the value of Russian equities based on seasonal factors that typically returns investors some 20% between September and January.
“Unlike previous months, the main explanation for the above-average performance in flows is mainly attributed to the recovery in Equity flows. Nevertheless, we see growing differentiation in flows to EM, with some markets still lagging and not capturing all the benefits of this rally, and other markets benefiting from high liquidity,” says IIF’s Fortun.
While investment into equities is making a difference, EM debt markets are also benefiting from the improving sentiment. Debt flows posted an inflow of $36.7bn; equities saw impressive figures with an inflows of $39.8bn (of, which $7.9bn were China inflows), reports IIF.
“Regionally, our data shows inflows across all regions, with EM Asia a clear winner, with inflows of $41.8bn,” says Fortun.
Russian retail investors take profits as foreign investors arrive
While Russia has not caught full brunt of renewed interest in EM equity capital markets it has been a big winner nonetheless. The Moscow Exchange registered record monthly outflows from retail brokerage accounts in November. Individuals sold R116bn ($1.5bn) worth of Russian stocks in
10 ​RUSSIA Country Report​ January 2021 ​ ​www.intellinews.com