Investment strategy Correspondent
Sujata's Feed
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”.

Aug 7, 2014

Russian bond yields surge on food bans as emerging currencies retreat

LONDON, Aug 7 (Reuters) – Russian bond yields surged to
multi-year highs on Thursday as food import restrictions fanned
inflation fears, while the rouble hit new 4-1/2 month lows,
leading a swathe of emerging currencies slipping against the
dollar.

President Vladimir Putin ordered food import restrictions on
countries that have imposed sanctions on Moscow over the Ukraine
crisis, a decision that will hurt the West but will also
exacerbate Russian inflation and deepen its isolation.

Aug 6, 2014

Russian stocks, rouble hit 3-month low on sanctions talk

LONDON, Aug 6 (Reuters) – Russian stocks and the rouble
slumped to three-month lows on Wednesday, leading to losses
across emerging markets, as the Kremlin began to ramp up talk of
retaliatory sanctions against the West.

Developing-market assets were also pressured by the dollar’s
rise to 11-month highs. A raft of robust U.S. economic data has
investors bracing for interest rate rises in the United States
in the next six to 12 months.

Jul 25, 2014

With eye on sanctions, foreigners slash Russia stock, bond investments

LONDON, July 25 (Reuters) – Foreign equity and bond
investors who had tentatively ventured back into Russia after a
huge early-2014 selloff are again slashing their holdings for
fear of being caught in the crossfire of Western sanctions.

Russia has fared worst among the big emerging equity markets
this year, with dollar-based losses of 13 percent.