European retail investors bet big on Ukraine war trades
01/03/2022 12:31
By Danilo Masoni
MILAN, March 1 (Reuters) - European retail investors haven't
been scared away by the market volatility caused by the Russian
invasion of Ukraine, with data from trading platforms showing
big bets on Gazprom and other stocks that have moved the most in
response to the crisis.
While Moscow has shut its stock market, trading has
continued elsewhere in London and Europe, including on
retail-exposed platforms like Lang & Schwarz (L&S) LUSGn.DE
and Tradegate T2GG.F in Germany and eToro.
Depository receipts in Russian gas giant Gazprom GAZP.MM
were among the most briskly traded from Thursday to Tuesday on
L&S and Tradegate, even as its share price has tumbled almost
80% over the last eight sessions.
The top trade was defence group Rheinmetall RHMG.DE which
soared on the prospect of a big boost to military spending in
Germany, Europe's No.1 economy. Its shares have surged 50% in
the past four sessions, but are down 10% from a peak on Monday.
Also a favourite this week with retail investors was
security electronics firms Hensoldt HAGG.DE , along with
renewable-energy firms which look set to benefit from a global
effort to reduce reliance on Russian gas.
Social trading brokerage eToro said retail investors have
been net buyers through the heightened volatility seen this year
and this attitude did not change significantly last week when
Russia invaded Ukraine.
"This is consistent with our global investor survey that
shows retail investors well diversified, comfortable with their
investment plans, and not changing despite the higher risks,"
said eToro global market strategist Ben Laidler.
Gazprom shares saw a 2,201% increase in average opened
positions from Thursday to Monday on eToro compared to the
previous 12 months, even as the brokerage warned of intermittent
trading and market disruptions on Russian stocks and other
securities.
"Just bought in. It cant drop forever right?," said eToro
user @gekooo from Finland, referring to a trade he made on
Gazprom shares.
Gazprom is now the 140th most-held stock on eToro compared
to the 185th a month ago.
Likewise, opened positions in Rheinmetall rocketed 3,519%
over the same period, while those in wind turbine makers Nordex
NDXG.DE and Vestas Wind VWS.CO jumped 167% and 108%
respectively.
(Reporting by Danilo Masoni;
Editing by Bernadette Baum)
((Danilo.Masoni@TR.com; +39-02-66129734; Reuters Messaging:
danilo.masoni.thomsonreuters.com@reuters.net; On Twitter https://twitter.com/damasoni))