Investment strategy Correspondent
Sujata's Feed
Sep 3, 2014

Russia Ukraine assets rally on peace talk; emerging stocks at 3-yr high

LONDON, Sept 3 (Reuters) – Russian and Ukrainian bonds
rallied on Wednesday, and Moscow-listed shares leapt 4 percent
after Kiev said a “permanent ceasefire” had been agreed in the
Donbass area, the news also sparking gains across emerging
assets.

The Kremlin watered down the talk of a formal ceasefire, but
it confirmed that steps for peace had been discussed.

Sep 1, 2014

Bracing for debt troubles as Ukraine gloom deepens

LONDON/KIEV Sept 1 (Reuters) – Global investors’ view of
Ukrainian bonds as a relatively safe bet anchored by Western
support is taking a battering as the country’s economic gloom
deepens, with many starting to brace for some form of debt
restructuring.

Fund managers, among whom Templeton’s Michael Hasenstab is
prominent, have until now figured that Ukraine would avert
all-out war with Russia, allowing its economy to recover.
Second, they have reckoned the International Monetary Fund,
which has pledged a $17 billion loan deal, has Ukraine’s back.

Aug 29, 2014

Russian assets fall, broader stocks steady near 3-yr high

LONDON, Aug 29 (Reuters) – Military tensions and a worsening
economy put Russian dollar-denominated stocks on track on Friday
for a 4 percent loss on the month, bucking broader emerging
equities that were poised for their seventh straight month of
gains.

Russia stands accused of sending troops into Ukraine to
shore up a separatist rebellion that had appeared to be ebbing.
That has sharply escalated the five-month conflict over eastern
Ukraine and raised the spectre of fresh sanctions from the West.

Aug 20, 2014
via Global Investing

Betting on (expensive and over-owned) Indian equities

How much juice is left in the Indian equity story? Mumbai’s share index has raced to successive record highs and has gained 24 percent so far this year in dollar terms as investors have bought into Prime Minister Narendra Modi’s reform promises.

Foreign investors have led the charge through this year, pouring billions of dollars into the market. Now locals are also joining the party – Indian retail investors who steered clear of the bourse for three years are trickling back in – they have been net investors for 3 months running and last month they purchased Rs 108 billion worth of shares, Citi analysts note. 

Aug 20, 2014

Russia economic funk ripples out through ex-Soviet states

LONDON/ALMATY Aug 20 (Reuters) – Farangees Islomova is
worried. Her husband, who labours on a construction site in
Moscow’s Schelkovo suburb, usually sends 15,000 roubles home to
Tajikistan every month. But in July he sent her just two-thirds
of that.

“My husband says they haven’t started a new building yet. He
had wanted his younger brother to join him in Moscow…but
recently he called and said: ‘The master says he won’t take any
new workers and there will be lay-offs’”, said Islomova, a 36
year-old mother of three, whose family relies on the money her
husband sends from Russia.

Aug 14, 2014
via Global Investing

Sanctions bite Russia but some investors are fishing

By Andrew Winterbottom

Russian stocks are up today, for the fifth day in a row and at the highest level in two weeks. What’s going on? As we wrote  here earlier in the week, foreign investors have been fleeing this market.  However it could be that some of them are starting to put aside concerns about the potential for further sanctions on Moscow and are scouring Russia’s stock markets for contrarian buying opportunities.

Russian stocks, chronically undervalued, are trading now at a discount of more than 60 percent to broader emerging markets, and to China which by all accounts is the standout beneficiary of the Russian woes. Just how cheap Russian shares are can be gauged from the fact they trade at a discount event to turbulent Pakistan. Here is a link that compares Russian equity valuations with other emerging and developed markets:  http://link.reuters.com/guv77v

Aug 14, 2014

Euro yields at record lows as economy falters; stocks up

LONDON, Aug 14 (Reuters) – Bond yields dropped to record
lows across the euro zone on Thursday and the euro hovered near
its weakest in nine months after Germany reported its economy
shrank in the second quarter, fuelling expectations of more
central bank stimulus.

The chance of more action from the European Central Bank
helped equity markets to recoup some of their early losses. So
did remarks by Russian President Vladimir Putin, who said his
country did not want conflict with the outside world
.

Aug 14, 2014

Euro yields, global stocks fall on economic setback fear

LONDON (Reuters) – Bond yields across the euro zone hit record lows on Thursday and the euro hovered near its weakest in nine months after Germany reported its economy unexpectedly shrank in the second quarter, casting doubt on the region’s fragile recovery.

Germany’s 0.2 percent contraction came after data earlier this week showed gross domestic product fell in Japan, Chinese lending declined and U.S. retail sales stalled.

Aug 14, 2014

Euro yields, stocks fall on economic setback fear

LONDON (Reuters) – Bond yields across the euro zone hit record lows on Thursday and the euro hovered near its weakest in nine months after Germany reported its economy unexpectedly shrank in the second quarter, casting doubt on the region’s fragile recovery.

Germany’s 0.2 percent contraction came after data earlier this week showed gross domestic product fell in Japan, Chinese lending declined and U.S. retail sales stalled.

Aug 8, 2014

Ukrainian company bonds hit by fear of debt restructuring, default

LONDON, Aug 8 (Reuters) – Ukrainian companies’ dollar bonds
are lower than they’ve been for months on fears the country’s
worsening economy, armed rebellion and dispute with Russia will
send more of them the way of agro firm Mriya, which has hinted
at a debt restructuring.

Mriya’s bonds due 2016 and 2018
have halved in value since it told creditors last week that high
raw materials prices, weak sales and difficulty obtaining
working capital were forcing it to “take steps to restore its
financial viability”.