08/06/1998 15:27:39 Russia shares end down 4 pct, finance woes focus
MOSCOW, Aug 6 (Reuters) - Russian shares slid a further four
percent by the close on Thursday, adding to a more than three
percent fall the day before.
Dealers said that investor uncertainty over Russia's
troubled finances was the main focus rather than general
nervoussnes in world equity markets.
Reuters composite index <.RRC1> ended down 3.16 percent at
93.19 while the RTS1-Interfax index <.IRTS> closed with A 4.09
percent loss at 135.882.
"There (in the West) they are coming down from the highs,
they are virtually calling it a correction but we have not
stopped falling," said Menatep bank head trader Sergei Kosinkin,
noting also high rates on the local debt market.
"The main thing overall is the unsatisfactory financial
situation here. Even good results from companies are being
cancelled out by the state of the state's finances," he added.
Dealers said that the market has now fallen 76.66 percent
since the start of the year.
"This fall (in the market) has global reasons. We are coming
down to new low levels, sellers appeared on the market today,"
said UFG trader Maksim Perlin.
"The PRIN market says most. Today they are at a level which
shows that investors do not believe in Russia," he said.
Turnover was again very low, with the RTS trading just 18
million and most activity concentrated in a few of the most
"People are looking at a few liquid stocks, the whole market
has come down to five or six shares. This is a totally
speculative market," Perlin said.
News from top energy stock UES <EESR.RTS> that it plans to
make a planned bond issue before the end of November failed to
lift its stock, even bringing scepticism that it could make the
issue in the current market conditions.
It ended 6.5 percent lower at $0.115. Other key stocks also
fell, with Mosenergo <MSNG.RTS> down to $0.049 from $0.051 and
Rostelecom <RTKM.RTS> slipping to $2.04 from $2.20.