Russian Stocks Now Cheaper Than Ever as Oil Rout Deepens - Bloomberg

Russian Stocks Now Cheaper Than Ever as Oil Rout Deepens - Bloomberg:



"Russian stocks keep finding new lows. The Micex Index (INDEXCF), long one of the world’s cheapest benchmarks, is now trading at the biggest discount to emerging-market equities since at least 2005.



The ruble-denominated gauge has lost 8 percent this year, compared with a 1.1 percent drop in the MSCI Emerging Markets Index, as sanctions linked to the Ukraine war suppressed Russia’s economy. The selloff pushed the Micex’s valuation to 4.7 times projected earnings last week, near the cheapest relative to the developing-nation gauge’s multiple of 10.7 since at least 2005, data compiled by Bloomberg show.



Investors have pulled money from the world’s largest energy-exporting nation as tumbling oil prices and sanctions linked to the Ukraine conflict curb growth. Central bank data show net outflows from Russian assets totaled $75 billion in the first half, compared with $61 billion in all of 2013. The ruble has weakened 19 percent against the dollar this year, the second-worst performance among emerging-market currencies."



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