Retail Investor Statistics - October Inflows Set New Record

According to Moscow Exchange, retail investors bought R73.7 bln worth of Russian stocks in October, setting a new record. YTD retail inflows into equities have now passed the R400 bln mark.> The number of brokerage accounts continues to grow at breakneck speed. In October, 742k new accounts were opened, bringing the total to 7.6 mln. This number can be viewed as a good forward-looking indicator for future inflows.> Inflows into local mutual funds also remained strong in October at R20 bln, although most of this money was channeled into bond market funds in response to higher yields. Equities received only 15-20% of the amount.Retail investor inflows remained strong in October despite increased market volatility. As we have mentioned before, local investors often act opportunistically and look to buy on dips. It does not look like foreigners were big sellers in October. The $1 bln inflow from retail accounts matches the amount of stock sold in placements by Sovcomflot, Aeroflot and Samolet Group. Moreover, the organizers of these placements have publicly stated that demand from retail investors played a big role in all three deals. The aggregate retail investor portfolio did not change much in October. Sber remained the largest component despite going ex-dividend. Gazprom's weight increased slightly. Nornickel's weight slid again, suggesting that nonresident interest in the stock is reviving. Recall that foreigners were dumping the stock after the environmental accident in May, while locals more than doubled their exposure to the name, bringing it to 13% of the top 10 portfolio by the middle of the year. This number has now fallen to 11%. Aeroflot once again appeared in the top 10 following its placement.