A trader works on Moscow Interbank Currency Exchange (MICEX).
Photo: Yury Martyanov
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Market Dn to Yukos
Driven down by the decline on raw exchange markets, Russia’s stock exchanges endured the slump yesterday with MICEX and RTS losing 3.7 percent and 4.4 percent respectively. The country’s market is going down for 11 weeks running and the experts say they haven’t witnessed such everlasting drop since 2004, when the government presented tax charges that crashed Yukos.
MICEX closed 3.72 percent down at 1,397.46 August 5, having sunk to its minimum of October 2006. RTS shed 4.42 percent to 1,812, which was its lowest value since May of 2007. The market would roll back to the values of more than two years ago should the dollar-denominated index of RTS be re-calculated in rubles, said Troika Dialog Portfolio Manager Vladimir Potapov.
One of the reasons of yesterday’s slump was the decline on raw exchange markets. The oil quotes fell yesterday to the three-week minimum and the quotes of other raw, including metals, dropped as well. Gold and silver, for instance, fell by more than 2 percent and nickel futures lost 1.56 percent to $17,927.
But the stocks of raw companies cover a half of Russia’s market, so the loss of the latter was hefty. Quite a few blue chips sank by over 6 percent yesterday. Gazpromneft lowered 6.74 percent on MICEX, Rosneft fell 6.5 percent and Tatneft shed 6.38 percent. At the same time, Aeroflot grew 1.74 percent and Rostelecom gained 0.07 percent.
The experts say that peculiar features of current slump are that it happens contrary to Europe’s trend (the indices gained 2.4 percent to 2.6 percent there on Tuesday) and it is of gradual and prolonged nature. The market in Russia is going down for 11 weeks with no breaks of notable recovery.
www.kommersant.com
All the Article in Russian as of Aug. 06, 2008
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