- Jan 31, 2005
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Its funny how just a few short months ago Russia was throwing its weight around as it once again became a true world superpower flush with money. My how times have changed.
This I believe is the third time Russia has suspended trading in the past month. At this point Russia is hurting far worse then most other countries over the whole affair.
If and when things get back on an even keel I wonder if Russia will take steps to isolate its financial interests from the rest of the world....
Article
Russia suspends stock trading; bans short sellers
MOSCOW: Russia's market regulator suspended trade on the stock market seconds after it opened on Tuesday on signs of a fresh rout after U.S. lawmakers rejected a financial industry bailout plan and markets plummeted.
In a few seconds of trade, shares in the world's largest gas producer Gazprom plunged 7.8 percent. Among other liquid shares, oil company Rosneft fell 8 percent, Surgut dropped 8.4 percent, and Gazprom Neft and Novatek both tumbled by 10 percent.
The market reopened after two hours.
Earlier, the regulator re-imposed a ban on unsecured short selling imposed in mid-September, in the aftermath of Russia's biggest stock market crash since the financial meltdown of 1998. The ban was briefly lifted late last week.
Liquidity on the Russian stock market, thinned by a mass exodus of foreign investors, all but disappeared two weeks ago when the finance industry was hit by a crisis of confidence.
Volatility on foreign markets has been mirrored in Russia, and exaggerated by low liquidity.
On Monday, Russia's benchmark share index, the RTS, closed down 7.1 percent, well before the U.S. Congress failed to agree a rescue package.
The energy-laden Russian market was also facing a hit from oil's 10 percent fall in the previous session, which pressed U.S. crude futures back below $100 per barrel.
"Globally, investors are running from risk. With the price of crude crashing back to the $95 per barrel level plus worries about the outlook for stability within the country's financial system, Russia is firmly in that category," Uralsib strategist Chris Weafer said.
This I believe is the third time Russia has suspended trading in the past month. At this point Russia is hurting far worse then most other countries over the whole affair.
If and when things get back on an even keel I wonder if Russia will take steps to isolate its financial interests from the rest of the world....
Article
Russia suspends stock trading; bans short sellers
MOSCOW: Russia's market regulator suspended trade on the stock market seconds after it opened on Tuesday on signs of a fresh rout after U.S. lawmakers rejected a financial industry bailout plan and markets plummeted.
In a few seconds of trade, shares in the world's largest gas producer Gazprom plunged 7.8 percent. Among other liquid shares, oil company Rosneft fell 8 percent, Surgut dropped 8.4 percent, and Gazprom Neft and Novatek both tumbled by 10 percent.
The market reopened after two hours.
Earlier, the regulator re-imposed a ban on unsecured short selling imposed in mid-September, in the aftermath of Russia's biggest stock market crash since the financial meltdown of 1998. The ban was briefly lifted late last week.
Liquidity on the Russian stock market, thinned by a mass exodus of foreign investors, all but disappeared two weeks ago when the finance industry was hit by a crisis of confidence.
Volatility on foreign markets has been mirrored in Russia, and exaggerated by low liquidity.
On Monday, Russia's benchmark share index, the RTS, closed down 7.1 percent, well before the U.S. Congress failed to agree a rescue package.
The energy-laden Russian market was also facing a hit from oil's 10 percent fall in the previous session, which pressed U.S. crude futures back below $100 per barrel.
"Globally, investors are running from risk. With the price of crude crashing back to the $95 per barrel level plus worries about the outlook for stability within the country's financial system, Russia is firmly in that category," Uralsib strategist Chris Weafer said.
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