UPDATE 2-Russian shares slump in London, Moscow shut again
* FTSE Russia IOB index of GDRs down 10.2 percent
* Russian bourses stay closed, RTS still down 21 pct on week
* Regulator says exchanges may not open on Monday
(Adds London-listed shares, close, rouble, quotes)
MOSCOW, Oct 10 (Reuters) - Russian Global Depositary Receipts (GDRs) fell in line with a collapsing global stock market on Friday, while Moscow's bourses remained shut by order of the markets watchdog.
The FTSE Russia IOB index .FTRIOB, which contains some of the most liquid Russian GDRs, closed down 10.2 percent on the day, shrugging off news that Russia could start buying shares to support the market in the next few days. [ID:nLA314643]
The share purchases are part of Russia's $210 billion market rescue package, but analysts say the global financial market situation needs to stabilise before confidence returns.
Moscow's bourses did not open on Friday, but that did not stop them from recording their worst weekly performance in a since the 1998 financial crisis.
The benchmark RTS index has lost 21 percent this week , while the MICEX, an indicator of more liquid rouble trade slumped over 24 percent .
"Thank goodness we're closed today," Alfa Bank said.
The MICEX exchange plans to resume trade on Monday, Oct. 13, an exchange official said, but the head of Russia's market watchdog, Vladimir Milovidov, said he was still weighing options.
"As far as the next several days are concerned, we will have a look on Monday and act to prevent uneconomic actions and exceses panic, especially since the issue of trade suspension is under discussion not only here, but in the West," Milovidov said.
Of the Russian companies traded in London, steel group Evraz (HK1q.L) lost 23 percent as its sector battled a sharp reduction in orders from the construction and automotive sectors.
Miner Norilsk Nickel (NKELyq.L), part owned by cash-strapped Russian billionaire Oleg Deripaska, fell 7.7 percent.
Russia's largest oil company, Rosneft (ROSNq.L) fell 13 percent, while the price of oil fell 4 percent CLc1.
"People are still trading over the counter," Da Vinci Capital hedge fund manager Gleb Yakovlev said. "It can only stop the execution of margin calls."
The sharp selloff as investors flee Russian assets has put pressure on the rouble, prompting regular interventions from the central bank to support the currency around the 30.41-40 level against a euro-dollar basket.
Dealers estimated the central bank sold around $3 billion on Friday, taking sales for the week to roughly $17 billion or approximately 3 percent of Russia's gold and forex reserves.
Liquidity has been sapped by foreign investors' flight from emerging market risk and several rounds of mass margin calls on local players. The lack of liquidity has exaggerated moves on the local market, making double-digit percentage index changes the norm and triggering frequent trading halts.
However, some market players have been unhappy with the frequent and unpredictable trade stoppages, implemented by the markets watchdog at times of steep rallies as well as falls.
"The actions of (the markets watchdog) cannot be called thought out. They further increase the uncertainty in the market," Maxim Grebtsov, analyst at Sviaz Bank, said in a note.
"It is bad enough that we do not know in which direction the U.S. market is going to move and from where to expect a new blow. But it is also unclear when we are going to be able trade and when we are not." (Reporting by Polina Vorobieva, Melissa Akin, Andrey Ostroukh and Toni Vorobyova; Editing by David Holmes)
