After a three-week break, the international investors have started to reduce investments in the Russian stock market. Over the past week, they took almost $60 million Outflow observed from many country and regional funds and due to a desire to fix profit after rapid growth. However, experts say, amid the massive monetary stimulus from leading Central banks control the search for cheap assets will resume, and along with them will recover and the demand for investment in the Russian market.International investors started to reduce investments in shares, according to information of Emerging Portfolio Fund Research (EPFR). According to “Kommersant”, based on the report data, Bank of America (account numbers EPFR), for the week ended 17 June, the total outflows from stock funds totaled $6.4 billion, which is twice less than the inflow a week earlier. The main outflows are still coming out of EM funds, which lost $3.8 billion versus $4.4 billion in the previous week. Sale prevailed in the developed markets funds, the net outflow of funds of which were on the week of $2.5 billion, which is six times smaller tributaries last week.The flight from a wide range of funds linked to the desire of investors to fix the profit received by the end of the rapid growth of indexes in recent months. After the March collapse of leading indexes grew by 30-52% and returned to the February values. In particular, the American index S&P 500 has once again been able to rise above 3 thousand points, and the NASDAQ Composit for the first time in history exceeded 10 thousand points.”A few years earlier the achievement of such levels would cause a worldwide panic and a total sale of all,— said the asset Manager of UK “Region Esset Management” Alexey Skaballanovich.— Now, when investors are hardened epidemic that has led to the fact that “hunters behind cheapness” temporarily stopped buying assets around the world.”The reason for taking profit could be the destabilization of the US that provoked the protests and the looting and swaying along with them, the popularity of Donald trump. Concern investors and economic forecasts of the U.S. Federal reserve, which is waiting for the decline of the economy by 6.5% this year. “Emerging markets of the presses, among other things, the uncertainty regarding the continuation of the epidemic (in Brazil and India were recorded outbreaks in the last month.— “B”),”— said the asset Manager of UK “Opening” Dmitry kosmodemyansky.Russian funds, demonstrated the third decade of may enviable resilience to external stimuli, this time not remained aloof from the General trend. According to EPFR, over the past week investors have pulled out of which $57 million This result is comparable to inflows in the previous week and the first with a minus sign in the second decade of may. For the previous three weeks of net inflows �� Russian funds amounted to $89 million as a result of the outflow result from the beginning again was negative — minus $47 million, However, compared to other BRIC countries the losses are small: from the collections of China, investors withdrew $1.5 billion from the funds of India is $215 million, Brazil — $111 million, the Majority of experts doubt the sustainability of the situation. According to Alexei Skaballanovich, the second wave of the pandemic is limited to only conversations, but the ambitious measures taken by Central banks around the world to reduce rates and to flood the system with money, have not gone away. Capital will continue to seek higher-yielding assets, and the Russian stock market highest dividend yield in the world, against the background of high oil will attract investors, he said. Dmitry kosmodemyansky agrees that the influx of international money into the Russian market is “only a matter of time.”Vitaly Gaydayev
