Kathleen Gallagher, Investment Week, 09 March 2022:
The £69.6m JP Morgan Russian Securities (JRS) trust share price rose 105% on Wednesday (9 March) morning, before retreating slightly and ending up 58.5% up by noon.
Analysts dismissed the move, with Matthew Read, senior analyst at QuotedData, calling it “nonsensical”.
“The Moscow Stock Exchange remains closed and so there are no ‘real’ prices, even for locals, let alone overseas investors,” he said. “What we can say is that the value remains seriously impaired and there is no sign of this abating.”
The company has a net asset value of 40.1p per share, but the share price hit 187p at one point.
“Our best guess is that it is most likely private investors thinking it is oversold and that the current price reflects very little volume,” said Read. “However, we place a lot more faith in the NAV.”
The analyst added that it is “somewhat distasteful” that a small number of investors are trying to make a quick buck on the back of crisis of Ukraine.
The trust is down substantially following the invasion of Ukraine, with its share price 79.4% lower over one month.
“JRS has bounced after a big fall, but given the huge volatility we are seeing and the total lack of clarity on what will happen next I would question anybody who has much conviction on where things will go from here,” said Pascal Dowling, partner at Kepler Partners. “We are in the thick of it right now and discretion may be the better part of valour for those who are tempted to try and play the peaks and troughs.”
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