Russian equity market attracts domestic investors
28 Mar, 2007 04:57
Russia’s economic growth has attracted record amounts of international investment. However, according to the managing director of Standard & Poor's, the Russian equity market is marked by the rise of a domestic investor class.
Robert A. Shakotko, the managing director of Standard & Poor's, noted the Russian equity market is marked by the rise of a domestic investor class.“It is absolutely normal when we track the progress and development in particular equity market -to say that at some point a market becomes more dependent on domestic flows. This is normal in the process of a market becoming more mature. This is what we hoped to see in Russia. We were seeing the beginnings of that, we were seeing the beginnings of an investor class,” Robert A. Shakotko said. In his opinion, it is important for investors to consider both domestic and foreign inflows. “And certainly our business model in bringing industry and ultimately investment products to investors is dependent on a strong domestic investor base. Equity markets around the world are globalising now. It is not the question of becoming global, it is the question of being global. And investments and equity markets everywhere have to take account of both domestic and foreign,” Mr Shakotko added.