East Capital welcomes Russian stockmarket merger
Russia is to reform its stockmarket rules, and merge the RTS and Micex, creating a stronger and deeper stockmarket, writes Peter Håkansson in East Capital’s latest monthly note.
Håkansson, co-founder, chairman and head of Public Equity Team at East Capital, said the merger was something the asset manager had pushed for for several years, and it would creat a more liquid and transparent market.
The change comes on top of President Medvedev announcing at the end of June that the government would abolish quotas on American and Global Depositary Receipts of Russian companies. Although there are no restrictions on foreign investors buying shares in Russian companies, many preferred the ADRs and GDRs. But with quotas in place these traded at a premium to the shares.
East Capital itself preferred to buy local shares, which traded at discounts while still offering the same dividend and shareholder voting rights.