Non-residents resumed in April the purchase of Russian assets
In April 2020 the global market conditions continued to determine the impact of the pandemic coronavirus infection. At the end of the month the markets reacted optimistically to the news about the beginning of a gradual easing of restrictive measures in different countries. The rate of outflow of the capital from the Russian market in April has slowed and in some segments has resumed the purchase of Russian assets, it is noted in the next issue of the “review of the risks of financial markets.”
On the OFZ market due to the high demand from local investors, and the resumption of net purchases of non-residents yield to the end of the month is back to the lows of February 2020 and early may continued to decline. The volume of investments of nonresidents in the OFZ accounts of foreign depositories, NSD increased in April by 59.4 billion rubles, the share at the end of the month amounted to 30.6%.
On the Russian corporate securities market saw a decline of volatility and increased demand from local parties. The main buyers in the markets of shares and corporate bonds were systemically significant banks, non-residents significantly reduced the volume of sales of Russian assets. Corporate issuers continued placement of ruble-denominated securities compared to the previous month, three times increased the volume of placements of corporate Eurobonds.
In the foreign exchange market remained favourable situation. The supply of currency provided to non-financial companies and individual groups of banks, which together have sold foreign currency to 140 billion rubles. the Volatility of the exchange rate of the ruble against the U.S. dollar has declined, despite the collapse of oil prices and the transfer prices of individual oil futures on the world markets into negative territory. Not all market participants were ready for such a situation and on the results of trades in futures on the Moscow Exchange were losses. In the future, Moscow Exchange plans to establish more detailed rules of trading in non-routine situations and to increase transparency in its decisions.
Photo preview: Richard Drew / AP / TASS