Magnit Rout Shows Russian Consumer Fading as Rates Rise - Bloomberg

Magnit Rout Shows Russian Consumer Fading as Rates Rise - Bloomberg:



"OAO Magnit (MGNT), last year’s Russian stock-market darling, is turning into one of this year’s laggards.



The country’s largest retailer dropped to a 12-month low last week as a surprise interest-rate increase by Bank Rossii sparked concern that a slowdown in consumer spending will deepen. After a resilient retail industry formed one of the few bright spots last year for an economy that grew at its slowest pace since 2009, higher lending costs are sapping consumer demand just as the nation struggles to contain the economic and political fallout from its push into neighboring Ukraine.



Magnit’s global depositary receipts fell 3.8 percent to $45.50 on April 25 in London, extending its worst weekly decline since 2011 to 13 percent. The stock is down 31 percent this year after soaring 65 percent in 2013. The Bloomberg Russia-US Equity Index sank 7.9 percent last week as the truce forged to ease tension in eastern Ukraine unraveled, fueling concern that President Vladimir Putin faces stiffer international sanctions."



'via Blog this'