Positive on Russia

In recent months, the Russian stock market has staged an impressive rally. With stocks among the cheapest in the emerging market universe, it is trading at a discount of 40% compared to its peers

During 2008, Russia was among the weakest stock market performers in the emerging market universe, losing more than 70% in USD terms. But in recent months the market has staged an impressive rally, surging 115% in the six-month period which ended in August. The Russian market is among the cheapest in the emerging market universe and is trading at a discount of about 40% to its counterparts. There were two specific events in 2008 that played a significant role in the market’s downturn. These came in addition to the correction of the commodity prices from their high in the same year as wel...