Bright outlook for Russian stockmarket

Russia's economic growth rate is not far behind China's, yet its stockmarket is significantly cheaper, trading at around a 60% discount. Meanwhile, Russian companies are achieving a return on capital close to that in Latin America, which is above that in China and significantly higher than the US. The country also boasts low levels of public and corporate debt, which adds stability and a cushion against the current global credit crisis. So why has the market performed so poorly against its emerging market counterparts? A number of issues have weighed on Russia's performance. Foreign inves...