08/21/1998 14:57:24 Russian shares end down 5.56 pct in tiny volume
MOSCOW, Aug 21 (Reuters) - Russian shares ended with a more
than five percent loss on Friday, with volumes again tiny as
investors kept clear of the market amid the prolonged financial
crisis and a planned restructure of the debt market.
The leading RTS1-Interfax share index <.IRTS> ended down
5.56 percent at 81.76 with traded volume at $4.2 million while
the Reuters Composite index <.RRC1> closed with a 6.61 percent
loss at 55.71.
The market has suffered a total loss of confidence amid the
general financial crisis which Russia is suffering.
Analysts say investors will only begin to think about
returning to the market once they see the conditions of a debt
swap on Monday, under which the government plans to force a
conversion of short-term debt into longer-term paper, which will
be cheaper for the state to repay.
Analysts say the fate of all Russian markets, including
shares, virtually depends on the debt deal as they need to see
that all investors are treated fairly with no discrimination
against non-Russian investors.
Most leading shares suffered with UES <EESR.RTS> down to
$0.051 from $0.057 although oil major LUKOil <LKOH.RTS> managed
to rise by the close to $5.05 from $5.0.
((Patrick Lannin, Moscow Newsroom, +7095 941-8520