The continuing outflow of capital from Russia is having a negative effect on the ruble.
Photo: Ivan Makeev
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Ruble, Raw Materials Tumble
The Russian stock markets can’t seem to make a comeback. The price collapse on raw materials markets was accompanied by another round of selloffs. Foreign investors continue to pull their money out of Russia as the dollar rises against world currencies. The ruble has fallen to 25.17/$. All these factors scare Russian investors.
Futures contracts on a barrel of WTI oil have fallen 8.7 percent to $108.48. The cost of a troy ounce of gold has fallen by 2.8 percent, and the price of nickel has fallen 7.2 percent. In light of this, international investors are adjusting their strategies and pulling money out of countries that produce raw materials. Political risks from the “Mechel case” still exist in Russia, which, combined with Russia’s military actions in the Caucasus, also encourage the withdrawal of foreign investor’s money from Russia.
The MICEX index lost 3.2 percent yesterday, closing at 1324.99 points. The RTS lost 4.25 percent to close at 1589.19 points. Gazprom, LUKOIL, Rosneft and Surgutneftegaz lost 3.2-4.2 percent. Severstal lost 6.94 percent, Raspadskaya fell by 6.45 percent. The exchange rate of the ruble in comparison to the two-currency basket fell 30 kopecks to 30.27 rubles.
There was a run on the dollar yesterday, with more than $5 billion being traded. The ruble fell 43 kopecks against the dollar in the first half of the day, to 25.27/$, a low since last autumn, and lost another 10 kopecks by the end of the day. The ruble has lost 8.73 percent against the dollar since July 14, when the slide started. The euro lost 9 percent against the dollar in the sake period.
www.kommersant.com
All the Article in Russian as of Sep. 04, 2008
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