Capital outflow from funds investing in Russian shares intensifies and totals $49 mln for Oct 11-17 - experts
MOSCOW. Oct 19 (Interfax) - Outflow of capital from funds investing in Russian stock continued for the second week in a row for October 11-17 and totalled $49 million compared to $28 million in outflow for the previous week, according to Emerging Portfolio Fund Research (EPFR).
Therefore, total inflow of capital for Russian funds comes to $1.02 billion between the start of 2012 and October 17.
Investment company Uralsib Capital said in an analytical note: "The published results indicate that interest in Russian and European funds, which had its place in September owing to positive political decisions in Europe and the launch of QE3 in the U.S., has again been exhausted. Investors still do not want to put large amounts of new funds into European emerging market before the first signs of an improving macroeconomic situation appear. At the same, if Europe does not experience any major improvements in the coming weeks, the market might be very disappointed and the estimates, which shot up thanks to the summer rally, will be seriously tested. If preliminary PMI indexes, which appear in European countries on Wednesday, nonetheless indicate a long awaited improvement, Russia, as a cyclical market, might be able to make gains on new trends. In this case, there is a possibility that the RTS Index could increase to our target of 1,760 points by the end of this year."
