On the Russian stock market, which since the beginning of the year showed one of the most serious climbs in the world, reversal can happen. About it Bloomberg said the head of the Elbrus Capital Investments and Anton Khmelnitsky, the head of the strategy Department at BCS Financial Group Vyacheslav Smolyaninov.
Elbrus Capital this year exceeded the average revenue hedge funds investing in emerging markets. According to Khmelnytsky, recently, the Fund reduced investments in Russian stocks, as the market has grown too much.
“Once again, we will invest in Russian securities, we’re just waiting until oil prices return to the level below $40 and the ruble — by 75 per dollar, explained Khmelnitsky. Is a market of extremes. Exchanges too fell heavily in January, but progress since then is excessive”.
Smolyaninov in September correctly predicted the rise of the RTS index. In late April, he expressed the opinion that in the next three weeks the Russian stock market will fall by about 10%. Then, Brent crude has lost about 4.6%. In addition, the share of securities, demonstrating a negative trend, increased from 8% to 38%.
According to Bloomberg, the Russian stock market to a sufficient extent dependent on fluctuations in the value of oil. From the lows of January, the RTS index rose by 45%. In turn, during this period, Brent crude gained 56%.
On the eve of the price of a barrel of Brent crude oil fell nearly $3. If at the opening of trading on the London exchange ICE it exceeded $46, during the day fell to $43,45. Monday trading on the Moscow stock exchange was not conducted in connection with the Victory Day.
In late April, experts surveyed by Bloomberg have suggested that the situation in the oil market reminds of what was happening last year. Then the decrease of quotations resumed in may after a break. Analysts at BNP Paribas and UBS have suggested that in the coming weeks the price of oil could return to $30 per barrel.