The bell at the Moscow International Currency Exchange (MICEX)
Photo: Pavel Solovyev
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Stock Indexes Coming Back, Buy Now!
The Russian stock market is starting upward. At 2:30 p.m. local time, the MICEX index had fallen to 1166 points, down 9 percent. Then the biggest selling stocks began to rise. By 3:45, the MICEX index had risen to 1200.75 points, 6.3 percent lower than it closed at the day before. Thus, the index rose more than 2 points in a single hour. Events unfolded similarly on the RTS index. The RTS index fell to 1420 points, 6.9 percent lower than yesterday’s closing. Its lowest point during the day was 1407.35 points.
Political, economic and financial conditions make it unlikely that large investors will enter the market right now, even though the stock of many companies is cheaper than their net assets, noted Centerinvest Securities senior vice president Roman Andreev on RBC-TV. The sideways trend may last for a while on the market. Andreev did not think the market would fall again as it did today, nor would there be significant growth. Nor will there be a shortage of liquidity in the Russian banking system.
BTA Bank asset manager Oleg Kukushkin linked the market tendency with the rising dollar. As long as the euro is falling, he reasoned, the dollar will be bought, along with bonds and U.S. stocks. If U.S. unemployment figures worsen today, the euro will turn around, leading to volatility on the market. In any case, he concluded, it is a good time to buy Russian stocks. Kukushkin also expects the sideways trend to continue.
Aton Line analyst Ksenia Anoshina told RBC that Russian stocks have reached the level at which they can be bought for the long term. She connected the fall on the market with the conjunction of a number of negative factors, including pessimism about U.S. unemployment and the rising dollar. She also saw the influence of psychological factors on the market.
www.kommersant.com
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