As money leaves Russian stocks, China, other BRICS benefit

martes 12 de agosto de 2014 13:03 GYT

* Threat of more sanctions on Russia puts off investors

* China benefits as domestic factors improve

* Other BRICS also seen absorbing some outflows from Russia

By Andrew Winterbottom

LONDON, Aug 12 (Reuters) - With the threat of further Western economic sanctions hanging over Russia, foreign investors are deserting Moscow's equity markets and funnelling cash into other BRICS states, with China a standout beneficiary.

Russia has performed worse than any other big emerging market so far in 2014, with stocks down 17 percent in dollar terms and the rouble losing 9 percent. In the bond market too, anyone who bought rouble-denominated debt this year would have lost 14 percent, according to JPMorgan's GBI-EM index.

Sanctions placed on Moscow for its perceived role in the Ukraine crisis do not yet bar holding shares of Russian companies that are viewed as close to the Kremlin.

But investors have been exiting all the same, fearing more sanctions that could pull other Russian assets into the net.

Data, which may not capture the latest exodus, shows that more money left Russian stocks and bonds in mid-July than at any other time in the last six months.   Continuación...