Russian shares plunge on redemptions, crude

MOSCOW (Reuters) - Russia's benchmark index fell within sight of three year lows on Friday as foreign funds took more money out of emerging markets and Moscow indexes underperformed on weaker oil prices and liquidity fears.

Trading was halted three times on the dollar denominated RTS exchange, which said that the 9:30 a.m. EDT stoppage would last for the rest of Friday's session.

At that point, the benchmark RTS index was down 7.09 percent at 1,070.98 points, around 12 points above from its September troughs but slightly off an intra-day low of 1,062.69.

Trading continued on the MICEX exchange, whose ruble index was down 5.43 percent 923.26 points, underperforming the MSCI emerging markets benchmark .MSCIEF, which lost 1.44 percent.

"I think the main catalyst is still global factors: the sharp fall of the U.S. stock market (on Thursday), the fall in the oil price," Yaroslav Lissovolik, chief strategist at Deutsche Bank in Moscow, said.

"Of course an internal, Russian reason remains, linked to the fact that liquidity problems continue in certain areas of the market ... Some time probably needs to pass before people can fully realize that Russia has the resources and is taking the necessary measures in order to solve the liquidity problem."

Falling crude also drove the market lower. Benchmark Brent crude futures fell below $90, and investors feared it could ultimately extend losses to the $70 per barrel level used in Russia's budget.

The Russian ruble closed around 30.38 against a euro-dollar basket on Friday, having spent much of the day around the 30.40 level at which the central bank has been intervening in the market in recent weeks to support the currency.

(Reporting by Polina Vorobieva, Toni Vorobyova and Melissa Akin; Editing by Paul Bolding)