Economics
UBS Stands by Bullish Russia Call as Ruble Erases Gain for 2015
- Investor sentiment sours as oil slump erases ruble's 2015 gain
- Economists predict deeper slumps in GDP through early 2016
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UBS Group AG thought the worst was behind Russia when it raised the country to buy from hold four weeks ago. Meanwhile, the ruble erased this year’s gain as oil sank, stocks continued to drop from their 2015 highs and analysts predicted a deeper economic slump than previously forecast.
Now Geoffrey Dennis, head of global emerging-market strategy at UBS Securities, acknowledges that the bank may have acted too fast. But he’s standing by the bullish call, saying the cheapest market in developing nations is a buying opportunity as the downturn approaches its bottom.