Portfolio managers have recently moved some investment from China into the Russian equity and forex markets, expecting gains for energy companies and the Russian currency as prices of Russia’s largest exports - energy commodities - rally.
For example, during the third quarter, London-based hedge fund Carrhae Capital has moved some of its investment away from tech shares in China to energy companies in Russia, Bloomberg notes.
Ali Akay, chief investment officer at Carrhae Capital, told Bloomberg:
- Energy prices will remain elevated and companies in commodity-exporting nations will be beneficiaries of the global tightness in the supply of power-related commodities
The ruble is further expected to strengthen despite a higher risk of more U.S. sanctions against Russia, analysts say.
Iskander Lutsko, chief investment strategist at ITI Capital, told Bloomberg at the end of last month:
- The main factor is the rise in oil and gas prices, which should continue until the end of the year, and without talks about new sanctions, the ruble should be even higher