Putin Sows Doubt Among Stock Bears Burned by 29% Rebound - Bloomberg

Putin Sows Doubt Among Stock Bears Burned by 29% Rebound - Bloomberg:



"Traders who sent wagers against Russian stocks to a record high in March before getting burned by a rebound of more than 20 percent are showing no interest in betting against President Vladimir Putin a second time.



Even with Russian equities poised for the worst month since May 2012 on Putin’s intensifying standoff with the U.S. and the European Union over Ukraine, investors profiting from declines are staying away from boosting their positions against the Market Vectors Russia ETF, the largest exchange-traded fund tracking the nation’s companies. Short interest on the $1.46 billion ETF was 6 percent of shares outstanding as of July 29, down from an all-time high 21 percent on March 3, according to data compiled by Markit.



After the U.S. and EU began imposing sanctions against Putin four months ago, a thaw in the conflict with Ukraine spurred a bull market in Russian stocks that forced short sellers to unwind more than 75 percent of all bearish wagers against the ETF in a month. The fund, which soared 29 percent between March and July, added 2.6 percent to $24.46 yesterday after a round of new international penalties which some investors saw as milder than anticipated."



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