08/31/1998 16:40:01 Russian stocks end down as turmoil continues
MOSCOW, Aug 31 (Reuters) - Russian shares ended lower in
very low volume, traders said.
The benchmark RTS1-Interfax <.IRTS> share index fell 1.74
percent to close at 65.61 on a volume of just over $1.5 million.
Reuters composite index<.RRC1> ended down 2.13 percent at 46.95.
Many traders said they expected the trend would continue on
Tuesday in the wake of the parliament's refusal to confirm
Viktor Chernomyrdin as prime minister late on Monday.
"In my opinion, the rejection of Chernomyrdin's candidature
was already reflected in prices today," said UFG trader Anton
Abugov, adding that trade volume also had been affected.
Russia's main foreign exchange market, the Moscow Interbank
Currency Exchange (MICEX), remained suspended by central bank
On Monday on MICEX's electronic SELT <MMVBSELT> system the
rouble traded at an average rate of 10.8376 to the dollar with
and was as low as 13.00 roubles to the dollar. It was quoted at
a 9.00/11.00 bid/offer rate to the dollar last Friday.
Louise Gibney, a saleswoman at Fleming UCB in Moscow, said
only a political deal that put Russia's reforms back on track in
the next few weeks could melt the frozen market. Otherwise, "I
don't think we'll have an equity market in Russia," she said.
"Some of these people don't realize how much investor
confidence has been wiped out," she said. "The immense
destruction in value of Russian equities is absolutely
Electricity giant Unified Energy System <EESR.RTS> finished
at $0.0301/$0.0345 bid/offer, down from Friday's close of
$0.035/$0.0340, and LUKoil <LKOH.RTS> ended at $3.72/$3.90 after
((Moscow Newsroom, +7095 941-8520