Rising Risk Appetite Bodes Well For RTS

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The bounce off of trendline support at 1,300 we highlighted on November 6 (see in our online service Markets: Risk Appetite Regaining) has proven crucial for the Russian RTS, with the stock index gaining 14.5% since then to at one point trade at 1,500 on November 18. The recent surge has cemented the RTS as a regional outperformer, with the market gaining 193% since its 2009 low in March. By comparison, the Turkish ISE-100, the Polish WIG20 and the Hungarian BUX increased by 109%, 92% and 127% over the same period, respectively. Moreover, the Russian market is the only one to have hit a new 2009 high in November, suggesting that the RTS is benefiting disproportionately from the continuing rise in investor risk appetite.