Global investors became more interested in the Russian stock market thanks to the country’s desire for conservative fiscal policy and the easing of US sanctions. The data show that foreign ownership of Russian bonds rose to a five-month high exceeding 20 per cent for the first time since April, RT reports.
It is said that for investors who are looking for certainty, Russia has shown itself to be a predictable environment with little risk of sudden changes. Besides, the Russian ruble has shown the best results among other currencies in emerging markets this year. It has also become one of the 20 most frequently used world currencies, according to the SWIFT interbank transfer system.
“The markets like the technocratic orientation of the Russian government. This encourages them to look the other way when it comes to ESG [Environmental, Social and Corporate Governance],” the emerging markets strategist at BlueBay Asset Management, Timothy Ash, noted.
It is specified that the ruble index of the Moscow Stock Exchange, which reflects the prices of the most liquid Russian shares of the largest companies, has grown by 23 per cent this year. So, with foreign exchange reserves currently at a record high of $621 billion, the Russian economy is expected to grow by 3.9 per cent more this year.