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Foreigners Leave Russian Stock Market
The Russian stock market has not been able to stabilize for any considerable length of time. Yesterday, Russian stock indexes lost 10.7126 percent. Incautious declarations and actions by Russian officials are making rubles assets less attractive and nonresidents are leaving the Russian market. Russian stock indexes were worldwide loss leaders again. Trading had to be stopped at the very beginning of the day, and the selloff of Russian stocks continued when trading was resumed. Five minutes before the end of the trading day on the MICEX, trading was halted until November 13, or until it is resumed by order of the Federal Financial Markets Service. The MICEX index fell to below 650 points. RTS stopped at 725.89 points.
Trading was off to a bad start before it even began yesterday, with American and Asian markets sharply down and recession fears rekindled, even after China decided to spend $600 billion to stimulate its economy. The Japanese Nikkei 225 was down 3 percent, the Chinese SSE Composite was down 1.7 percent and the Korean KOSPI had lost 2.1 percent. European indexes lost 3.654 percent. Raw materials provided no comfort either. Urals oil was down $3 to $53 per barrel. Nickel contracts were down 4.5 percent, aluminum down 2.4 percent, copper down 5.4 percent. The commodities market has a strong influence on the Russian stock market, where more than half the stocks are those of raw materials companies.
Everyone was selling yesterday, but no one more than foreigners, who started their selloff Monday evening. Americans became conscious of growing political risks. The government’s decision to reopen the investigation of an accident at an Uralkaltsia mine in 2006 also made a stir. That company’s GDR had lost 70 percent on the London Stock Exchange in the last two days before the government decision any way.
www.kommersant.com
All the Article in Russian as of Nov. 12, 2008
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Photo: Alexander Miridonov
