Thursday 4 December 2014

Russia ETF Rush Halted as Kremlin Forecasts Recession - Bloomberg

Russia ETF Rush Halted as Kremlin Forecasts Recession - Bloomberg:



"Investors who piled into the biggest exchange-traded fund tracking Russian stocks at a record pace last month have started pulling out as the government acknowledged that the country is headed toward a recession.



Traders withdrew $22.7 million from the Market Vectors Russia ETF (RSX) on Dec. 2, the biggest outflow since mid-July, data compiled by Bloomberg show. The redemptions were the first since August and came about two weeks after the number of shares outstanding in the fund touched all-time high of 99.3 million. 




Sentiment is shifting as the Economy Ministry said Dec. 2 that gross domestic product may shrink 0.8 percent next year, compared with a previous forecast for 1.2 percent growth. It would be Russia’s first recession since 2009. The revised outlook shows the impact of tumbling oil prices and the plunging ruble on an economy already squeezed by international sanctions linked to the Ukraine conflict."



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