Posted on 09/16/2008 8:46:27 AM PDT by Grzegorz 246
Russia authorities halted trading on the country’s stock exchange on Tuesday after it plunged 17 per cent in a broad-based sell-off.
At 1700 local time, the rouble-denominated Micex index had fallen 17.5 per cent to 881.17 and the RTS index dropped 12 per cent to 1,131.120 as the falling oil price, margin calls on local investors and a broader sell-off in emerging markets stocks drove shares down.
“This is a good old-fashioned panic”, said Steven Dashevsky, head of research at Unicredit in Moscow. “It doesn’t feel like there is anyone domestically that can put the brakes on.”
Oil stocks tracked the price of Brent crude, used as a benchmark for Russian oil sales, as it sank below $90 a barrel. Gas giant Gazprom fell 8.3 per cent to Rbs98 and Lukoil dropped 12 per cent to Rbs1,355.51.
“The fundamental issue is oil. Russian oil companies are not producing more so their earnings are dependent on a rising oil price,” said Daniel Salter, analyst at ING. If the oil price falls, then earnings downgrades are in the pipeline for these stocks, he added.
State-backed bank VTB tumbled 33 per cent to Rbs0.03 and Volga Telecom sank 28 per cent to Rbs37.
Margin calls on local investors who have used stocks as collateral for loans continued to drive sales, as emerging market funds faced growing redemptions.
If this keeps up it will cut into Russia’s ability to pay salaries to invasion forces
Reapin’ the bitter harvest.
LOL. hahaha.
I do see something ominous developing here. Russia sees more and more of a need to defend Iran.
"No funds for mischief... What's an evil empire to do... sigh"
“If this keeps up it will cut into Russia’s ability to pay salaries to invasion forces”
Putie might want withdraw his thug troops from Georgia, Iran, Syria and the bombers and fleet in bed with Chavez.
For one thing, who would want to participate in a “market” run by the Russian Government ( I assume that’s who the Russian authorities are in the story)
I imagine Hugo down in Venezuela is not too happy with the dropping oil prices right now either. *happy grin*
Looks like those Russian tanks wasn’t such a neat idea after all, Mr. Putin. Now you get a dose of your medicine and it will hit you in your wallet.
I think that rocket in Putin’s pocket has turned into a bb.
Hopefully that rocket in Putie’s pocket will explode and make him even more desireable to the homosexuals around the world and in the KGB.
LOL
Russia is learning that they are no longer isolated in the world.
You know what would declaw the Russian bear?
20 dollar oil.
Poor Russia!
Thanks God that USA market is alive and growing every day!
Buncha Goons, let em’ go back to their bases where their officers pimp out the soldiers and the NCOs make the big money in black market cigarettes.
So Mr Putin - Hows that South Osetia thing working out for ya?
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