The Monday defeat of the $700-billion bank bailout bill in the U.S. House of Representatives battered the markets worldwide. Russia’s authorities opposed the threat by closing stock exchanges from the very morning.
Photo: Yury Martyanov
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Stock Exchanges Yielded to Adjustment
The Monday defeat of the $700-billion bank bailout bill in the U.S. House of Representatives battered the markets worldwide. Russia’s authorities opposed the threat by closing stock exchanges from the very morning. The floors opened later on and RTS and MICEX gained from 0.79 percent to 1.48 percent yesterday. But speaking about the sharp turn for the better would be premature. A number of big investors apparently decided to advantageously revaluate their portfolios on the last day of the quarter.
It became clear on Monday that the stock exchanges were destined to slump the next day. So, in an effort to minimize losses, the Federal Financial Market Service (FFMS) banned unsecured short sales in the morning, before the launch of the trade. Nevertheless, MICEX shed 1.07 percent in the first 30 seconds and some quotes dropped more than 5 percent. By order of the FFMS, the trading (except repo and negotiated deals on MICEX) was suspended at 10:31 a.m. MSK.
The floors opened at 12:30 a.m. MSK and the decline continued. RTS dropped 3.64 percent and MICEX sank 7.27 percent.
“Russia’s market played the U.S. news during 10 to 15 minutes after opening,” said Vladimir Malkhanov, who is the investment director at Sputnik Management Co. “Then, in the environment of the 2-percent growth in futures for the U.S. indices, the market felt the demand of western investors.” In the end, RTS grew 1.48 percent and MICEX gained 0.79 percent.
Some quotes were going up contrary to the market movement. Sberbank, for instance, that fell over 8 percent in the first seconds, abruptly gained 8.68 percent closer to the end, said Troika Dialog chief trader Timur Nasardinov. What’s more, the demand was very high for Gazprom stocks in the last two hours. Gazprom closed up 2.59 percent and VTB gained 2.02 percent. It looked like some big investors decided to advantageously revaluate their portfolios on the last day of the quarter.
www.kommersant.com
All the Article in Russian as of Oct. 01, 2008
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