Russia gets cheaper The Russian oil sector has been hit particularly hard this year, with prices halved by a triple whammy of the general market downturn, plunging crude prices and worries about shareholder rights in the face of consolidation. We continue to rate telecommunications and the automotive sector as outperformers, but we also believe that there are bargains to be found among blue chips in the oil sector and power utilities at current price levels. With little liquidity in second-tier stocks we think that now is a good time to increase exposure to blue chips such as LUKoil, Surgut, Mosenergo, Rostelecom and Norilsk Nickel. The information contained herewith is based on information made available to the public and is for information purposes only. Information sources are deemed reliable by RMG Securities, however RMG Securities abstains from any liabilities determined from the information herewith.
Analysis is based on dated market information and is subject to change.