Daily Archives: November 20, 2008

Special Extra: The Final Countdown on the Russian Stock Market

The RTS index is down nearly 20% this week in Russia

The RTS index is down nearly 20% this week

For the 35th time since the August financial crisis began, the Russian stock markets were shut down on Thursday at 1:30 pm Moscow time.  At their low ebbs, the RTS dollar-denominated index was down over 8%, and the MICEX ruble index was down over 9% (the RTS closed down 7.4% and the MICEX closed down 4.4%) .  Shockingly, the MICEX index was flirting with breaking through the 500-point psychological barrier into a 400-point valuation, and the RTS index had Sberbank, the nation’s leading and state-owned financial institution, was down a whopping 13% at its low point, closing down nearly 9%, while Gazprom and LUKOil were both down over 10% at the close.  The RTS, too, was flirting with 400-point territory. Crude oil prices continued their slide, threatening $40/barrel territory, and the Russian markets collapsed once again.  The RTS is down nearly 20% this week alone, despite repeated market closures and furious Kremlin buying.  Had this not occurred, the value of the exchange could well be zero already.  European markets were also down, but less than a third the amount Russia was facing.

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