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Russia’s Indexes Suffered the Heftiest Losses Worldwide
The yesterday’s global slump on commodity markets drove down the stock exchanges of Russia, having stripped the benchmarks of 2.08 percent to 3.45 percent by results of the trading. Nowadays, the investors prefer to pull money out of commodity markets and funnel it into the stock exchanges and exactly this trend fueled the U.S. floors yesterday.
Hit by the slump on commodity markets and negative movement of the U.S. indexes demonstrated on Wednesday, the benchmarks of Russia’s exchanges were losing from the very beginning yesterday.
“The investors have decided to fix profits after the record growth,” explained Trust Bank chief economist Evgeny Nadorshin. Amid other things, the sharp adjustment on commodity markets could be blamed on the absence of long-term investors. “Commodity markets were fed with speculative money and such investors come quickly and leave equally quickly,” said Denis Zabolotnev, who heads the sales department at Uralsib.
The futures for WTI oil shed 4.88 percent to $99.38 per a bbl yesterday. Therefore, the oil prices lost 11 percent of the record $111.8 per a bbl in the last three days. “The market could no longer ignore information about the increase in the U.S. oil reserves and decline in its actual consumption,” pointed out Alexander Potavin from AntantaPioglobal.
Large-scale sales at commodity markets drove down the quotes of extractive companies. MICEX went through the maximum loss of 3.22 percent and RTS dropped 3.66 percent during the day, although the decline on European exchanges didn’t surpass 1.5 percent Thursday.
But investors are returning to stock exchanges, enabling the traders to partially play back the decline. As a result, MICEX closed 2.08 percent down at 1569.18, while RTS shed 3.45 percent to 1946.79. The oils were the greatest losers - Gazprom Neft sank 3.15 percent, Rosneft shed 3 percent, LUKOIL dropped 2.79 percent.
www.kommersant.com
All the Article in Russian as of Mar. 21, 2008
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