NEWSMAX / BLOOMBERG: No major equity market in the world rallied more than Russia’s yesterday, underscoring how the latest round of international sanctions against the country proved weaker than many investors anticipated.
The RTS Index advanced as much as 2.1 percent yesterday, its first gain in six sessions, as the limited scope of the measures added to speculation that the U.S. and European Union are hesitant to deepen the standoff with President Vladimir Putin after his military incursion into neighboring Ukraine last month. That reluctance is a signal to buy the cheapest shares in the stock market in the developing world, according to Sberbank Asset Management and Prosperity Capital.
“The market had priced in the worst sanctions possible and those fears failed to materialize,” Anton Rakhmanov, who manages $5 billion in assets as the head of Sberbank Asset Management in Moscow, said in a telephone interview yesterday. “It’s a good time to buy. If the Ukraine crisis doesn’t escalate, then the Russian market has made it through the bottom.” … (more)
