As the falling oil prices are dragging down the ruble and the Russian stock market, Estonian investors are pulling out of the eastern neighbor.
“Unfortunately LHV clients have largely left the Russian market. Both traders and investors are keeping away from the Russian market,” Alo Vallikivi, head of trading at LHV, the largest Estonian-owned private bank, told Äripäev.
He said pessimism is explained by the bad economic climate, behind of which lies an even worse political climate. “The Russian market may seem cheap, but a state with a falling economy, where the situation is getting worse, I can not recommend to investors,” Vallikivi said.
The Russian Trading System Cash Index has fallen by a fifth since June while one euro now costs close to 75 rubles, down from below 55 in April.
Editor: J.M. Laats