Russia is becoming a promising market for investment traders because of the energy chaos and rising energy prices in the world.
The ruble has strengthened more than any other currency in emerging markets this month, and Russian securities are performing well amid falling shares in other emerging markets. The chief investment specialist from London hedge fund Carrhae Capital Ali Akay notes that energy prices will remain high, so companies from commodity-exporting countries will benefit from a supply shortage of energy resources and ratings of exporters of energy and raw materials will continue to rise.
The situation in the energy market has drawn attention to Russia as an oil and gas superpower and its healthy finances. It is noted that the country has $600 billion in foreign exchange reserves, and its debt burden is enviably low. At the same time, an analysis of Russia's profitability compared to other emerging markets shows its advantage.
As noted in a report by a strategic analysis group headed by London-based expert David Silvestrini, rising oil prices will boost the yields and dividends of energy companies' shares. This will strengthen the ruble, which in turn will help Russian shares grow. Experts make optimistic forecasts for raw materials and oil in particular.