Page 111 - RusRPTApr21
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8.3 Stock market
8.3.1 Equity market dynamics
Russia market rallied 10% over March as enthusiasm for the economy recovery grew. Most of the buying was in financials (up 26% YTD as of March 22) and oil & gas (up18% on rising oil prices). The other sectors remains more or less unchanged, rising 1-3pp and returning in low single digits YTD.
However, there was a sharp sell off following US president Joe Biden’s “Putin is a killer” comment on March 18 that sparked renew sanctions fears.
The average long positions among the most liquid names traded on MOEX fell 0.7% for that week. Retail still preferred to sell into the market rally and the spike in volatility the day after the comment made little difference – this is the most pessimistic stance of our retail clientele since early 2021.
Institutional flows remained largely optimistic for the second week running as we saw c60% more Buy orders than Sells.
Russian shares received net inflows of $65mn from ETFs in the same period – almost identical to the previous week, but more evenly split between inflows into Russia-dedicated ETFs ($25mn) and inflows from GEM ETFs ($40mn).
111 RUSSIA Country Report April 2021 www.intellinews.com
