Rossiskaya gazeta

Russia proved to be the best BRICS (Brazil, Russia, India, China and the Republic of South Africa) bet in 2015, surpassing China, the former leader, said Bloomberg, one of the world’s leading business and financial news agencies.

According to the agency, investors are no longer as concerned about the drop in oil prices as before, especially since they have stabilized at a level higher than $ 55 per barrel. Other factors also made an impact. As a result, our market has become one of the most attractive for investors. Investment in Russia may become even more advantageous if political risks in this country continue to lower.

“Our models are telling us to buy Russia,” Tim Love, a London-based investment manager at GAM U.K. Ltd., told Bloomberg. “Most Russian stocks are fundamentally undervalued,” Mattias Westman, the London-based founder of Prosperity Capital Management, said to the agency. He added: “There is potential for further recovery.”

The agency also noted that in nominal terms, Russia’s benchmark Micex Index has advanced 18 percent this year, 4 percentage points lower than the Shanghai Composite Index. Still, a drop in Russian volatility, along with an increase in Chinese price fluctuations, left returns adjusted for such fluctuations superior for Moscow by a factor of 1 to China’s 0.6.

It stands to mention, that as early as in March 2015, Bloomberg noted that the situation in the Russian economy had begun to change for the better. A growth of the dividend yield of stocks of Russian corporations was recorded. By mid spring, investors in ruble public stock gained an equivalent of 7 per cent in dollars, while investors holding public bonds of other developing markets lost 1.1 per cent in 2015.