Trading on the Russian stock exchange was suspended on Thursday for the third consecutive day following the worst stock price drop since the financial crisis of 1998, said a spokesperson for the market. “Trading has not yet started. We have not received permission from the Federal Financial Markets Service,” said the spokesperson for the dollar-denominated RTS exchange in Moscow.
The spokesperson for another major Moscow exchange, MICEX, where stock prices are expressed in rubles and which is also closed, stated that they have no information and do not wish to comment. Its website shows that trading has not resumed. Trading was suspended for one hour on Tuesday and then remained closed for most of Wednesday after regulatory authorities shut them down to prevent a collapse and give the government time to draft a rescue plan.
Officials had previously promised to inject $44 billion into the market to prevent a loss of investor confidence while the central bank stated it is reducing banks’ mandatory reserves by four percent. The RTS exchange has so far recorded a 57 percent drop in value after reaching its highest level in history in May. Analysts attribute this decline to a mix of falling energy prices, turmoil in global markets, and political issues, including concerns over the war in Georgia. Analysts have said that officials fear a panic outbreak if some Russian banks fail. (H)
