Russian share prices remained under downward pressure in January with the rouble falling a further 15% against the US dollar amidst continuing concern for the state of the Russian economy as industrial production was seen to have fallen by 10% over the year to December. There were however a number of interesting corporate developments which suggested that some investors at least were now of the opinion that with share prices already at distressed levels, significant value could be found in the market. This trend became apparent in December with
the takeover of Imperial Energy and is very much to be welcomed given the Magna Russia Fund’s focus on fundamental company-specific developments.
Indeed, although the value of the Magna Russia Fund still fell by 5.0% in January, this compares favourably with the 7.1% fall suffered by the MSCI Russia 10/40 Index, as several of the companies held by the Fund saw their share prices jump sharply higher.
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