Russian markets suspended after big selloffs

October 10, 2008

MOSCOW: Russian stock exchanges postponed trading Friday after massive selloffs on Wall Street and Asian markets.

Representatives of the MICEX and RTS exchanges said they suspended regular trading until further notice under orders from financial regulators. Limited trading and repo auctions were allowed.

Both indexes were up sharply Thursday as investors regained some of the losses suffered early in the week. The RTS index — widely seen as the economic benchmark — gained 10.9 percent to close at 844.7 points, while MICEX, where most of Russia' trading takes place, ended trading up 9.8 percent at 700.4.

But fears that steep declines in the U.S. and Asia would spark similar selloffs in Russia apparently led regulators to suspend trading.

Russia's once-booming stock market has racked up huge losses in recent months, with the RTS index dropping more than two-thirds since May. The market is plagued by the global financial chaos, dropping prices for oil — the backbone of Russia's economy — and concerns in the wake of Russia's war with Georgia.

[link to www.iht.com]