Friday reached Moscow Stock Exchange, a new low for the year – and maybe it’s not over yet.
2014 looks to be another good year for the investor, with a rise for equity funds of 17.5 per cent on average so far. But that does not apply everywhere – Russia funds have completely collapsed.
– Russia funds have previously been interesting because they looked cheap compared with other emerging countries. These values were lower and it was good dividends from companies. But the reason it has always been the political risk. And this year it has been shown that the risk was justified, says Maria Country Born, savings economist at SBAB.
The first stock market crash came in March, when Russia annexed the Crimea. After a few weeks, the Moscow Stock Exchange recovered, but last summer launched a new race and now the stock market has fallen over 36 percent since January.
That situation would change is not likely, assesses Landborn. The political unrest in combination with the low oil prices suggest that the bottom may not be reached.
– It was difficult to predict at the beginning of the year how far it would go. But when Putin gave a speech to the nation in the week we saw that he did not move an inch.
Swedish fund savers still have 14 billion invested in Russia. But there is a big difference compared to the beginning of the year, when it stood at 19 billion, according to figures from the Swedish Investment Fund Association.
– Most sits fortunately not with great savings in Russia. If you have a small portion of their monthly savings be it the drums, it need not be a disaster. But one should probably not think it’s a good buying opportunity, says Maria Landborn.
For those who after all have large sums saved in Russia, it may be time to think.
– If you need the money soon, or are concerned, one can take home part anyway.
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