Capital outflow from funds investing in Russian stocks totals $96 mln - experts
MOSCOW. Aug 9 (Interfax) - Capital outflow from funds investing in Russian stocks continued in the week of August 1 to August 7, totaling $96 million, compared to $40 million the week before, according to Emerging Portfolio Fund Research (EPFR) data.
From the beginning of this year to August 7, total outflow from funds investing in Russian stocks was $1.793 billion.
"In comparison with July, August was not too benevolent towards Russian funds. Moods were unstable, although several days ago decent macroeconomic news arrived from Europe (which has not yet been awarded with major attention by investors), and improvements in the European economic dynamic might eventually raise the appeal of the Russian stock market," investment company Uralsib Capital said in a report.
Furthermore, all of the resources from funds investing in Russian stocks were withdrawn through traditional funds this time, whereas exchange traded funds (ETF) managed to generate a minor inflow of $17 million, Uralsib Capital reported.
After enjoying three weeks of inflow, global Emerging Markets (GEM) funds experienced outflow of $206 million from August 1 to August 7 - just 0.05% of the entire quantity of funds under their management. ETF also enjoyed popularity in this area, earning $286 million in additional capital, while traditional funds lost $492 million.
Sberbank Investment Research reported that many market participants are once again optimistic about the prospects for a macroeconomic recovery in Europe and are expecting production in the U.S. to resume growth. At the same time, investors fear an overall slowdown in economic growth on emerging markets due to tougher monetary policy. In addition, they are concerned about negative changes that may result if the U.S. Federal Reserve decides to taper purchases of treasury bonds.
"We're seeing a significant inflow of funds to U.S. and European stock markets. At the same time, emerging market funds are losing their appeal in the eyes of investors, and they are withdrawing from their capital," the report said.