The slump on Russia's stock exchanges continues and the trend will hardly change for the better in the near time.
Photo: Borislav Kozlovsky
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Russia's Market Is In Flap
The slump on Russia's stock exchanges continues. MICEX lost over 5 percent as of 12:20 a.m. MSK, RTS fell 4 percent. The trend will hardly change for the better in the near time, the analysts speculate.
GMK Norilsk Nickel (down 7 percent), Surgutneftegaz, Sberbank and MTS (down 6 percent), Rosneft (down 5.8 percent) and Severstal (down 8 percent) led the percentage decline on MICEX. The analysts blame the slump on the downward movement of the U.S. markets, which, amid other things, forced Russia to pay attention to the global performance in addition to domestic news.
Besides, all stock exchanges of South-East Asia sank to the minimum early this week, and the market of Russia shouldn't be viewed as something standing apart, the analysts explain, forecasting no stabilization to happen here ahead of the global recovery.
The analysts don't forecast any positive dynamics for Russia's oil and gas sector either, saying it will correlate depending on oil prices that will test $100/bbl. Besides, as long as the foreign capital flows out of Russia's blue chips, speaking about the high demand for oil and gas sector in the next quarter would be too optimistic. The sector will be pressurized by the oil decline and poor reports for the third quarter. The export margin for oil sank to the indicators of the first quarter of 2007 and "Kudrin's scissors" are aggressively cutting the oil profits. Anyway, discussion of tax benefits that is slated to begin this month will inject a certain portion of optimism, the analysts forecast.
www.kommersant.com
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