Retail investors net buy 24.4 billion rubles in stocks

In July, individual investors in Russia remained net buyers of equities, purchasing 24.4 billion rubles worth of stocks despite an ongoing market adjustment.

However, corporate bonds attracted significantly greater interest, with retail net purchases reaching 90 billion rubles and exceeding combined inflows into equities and federal government bonds (OFZs).

Over the trailing 12 months, gold and ruble-denominated money market instruments delivered the highest yields across local asset classes.

During the month, volatility across most Russian financial market segments either declined or remained flat compared to June levels.

Meanwhile, yield dynamics for OFZs diverged across maturities, rising for short-term paper while declining for longer-dated bonds.

The trends highlighted in the latest issue of the Bank of Russia's Financial Market Risks Review reflect shifting domestic investor behavior.

While the ruble continued to depreciate throughout July, the pace of devaluation slowed compared to previous periods.

The retail preference for corporate fixed income over equities points to strong demand for high nominal yields amid monetary tightness.

Meanwhile, rising short-term OFZ yields signal market expectations of prolonged high interest rates, even as long-term yields declined.