Russian equity market dynamics
Last week, the Russian equity market outperformed the broader emerging markets (EM) index by 0.3%. This was mainly due to Russia-specific factors. Most likely, the market bounced a bit after previous underperformance due to geopolitical concerns.
Main Russian news
Russia’s industrial production growth accelerated to 7.0% YoY in November. The increase was seen in all four sectors. Extraction industries grew by 10.2% YoY, manufacturing industries rose by 5.3%YoY, the heat and gas supply sector rose by 3.9% YoY, industries related to water supply and sewerage, waste disposal and pollution elimination increased by 10% YoY. If compared to the pre-pandemic period (November 2021 to November 2019) the industrial production grew by 5.9%.
A meeting of the Russia-NATO Council may be scheduled for January. NATO Secretary-General Jens Stoltenberg has proposed holding a meeting of the Russia-NATO Council on January 12th, according to the information from the Russian Foreign Ministry. The meeting is proposed to discuss the draft of security documents demanding an end to NATO’s eastward expansion and military cooperation with countries such as Ukraine and Georgia, among other things. Russia presented this draft two weeks ago (please see some details in our previous weekly comments).
Author: Marina Tsutskiridze, Investment Specialist
Sources: Vedomosti, Bloomberg, TKB Investment Partners (JSC); December 2021