Russia Offers Attractive Valuations

The Russian stock market has barely moved over the past two years, despite a rebound in the oil price. Fund managers maintain the country is fundamentally cheap

David Brenchley 19 December, 2018 | 8:38AM

St Petersburg, Russia, Russian stocks, Russian equities, Fidelity, Eastern Europe

The Russian stock market and wider economy are inextricably linked to the oil price. Almost two-thirds of stocks in the MSCI Russia index are in the energy sector, meaning when oil weakens, so too do Russia stocks, and vice versa.

During the oil price crash in 2014-2016, Russian equities understandably went through a difficult period. From the start of 2014 through to the end of 2015, the price paid for a barrel of Brent crude oil slumped by two-thirds. In turn, the Morningstar Russia index, in US dollar terms, halved.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Baring Emerging Europe Ord671.01 GBP-0.30
Fidelity Em Mkts W-Acc-GBP1.83 GBP-0.65
Pictet-Russian Equities I GBP65.19 GBP-0.50
PJSC Lukoil5,094.50 RUB0.00
Sberbank of Russia PJSC212.15 RUB0.00

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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