MOSCOW, March 5 Russian stocks fell on Wednesday
morning, as investor nervousness about the Ukraine crisis
outweighed the positive effect of Wall Street hitting new record
Russian indexes edged up on opening but quickly reversed
direction. At 0710 GMT the rouble-denominated MICEX index
was down 1 percent to 1,343 points with the dollar-denominated
RTS down 1.1 percent at 1,171 points.
The indexes had rebounded by 5-6 percent on Tuesday after
crashing by 10-12 percent on Monday, illustrating how
developments in the unfolding international crisis around
Ukraine are driving the market.
On Wednesday the Russian market's downward move was in
contrast to positive developments on other global markets.
"Asia is mostly up this morning, joining the global rebound,
with the S&P reaching new highs. Though some may argue that
Russian stocks seem relatively cheap, EM funds' clients
certainly do not share this view for now, as they are facing
redemptions," Alfa Bank analyst Natalia Orlova said in a morning
"Tension on the markets fell yesterday - American indexes
have hit records," commented Andrei Vernikov, analyst at Zerich
Capital, in a note. "But let's look the truth in the face: our
market won't be a good object for investments this month."
He added that the Russian market "will not soar" at least
until March 30, when pro-Russian authorities in the Ukrainian
region of Crimea have announced that they intend to hold a
referendum on the region's status.
The rouble was relatively steady, edging upwards on opening
before edging down against the dollar and euro.
At 0710 GMT the rouble was down 0.1 percent at 36.11 against
the dollar, and down 0.1 percent at 49.61 against
It was down 0.1 percent at 42.18 against the dollar-euro
The central bank said on Wednesday it had spent the
equivalent of $11.4 billion in foreign currency reserves on
Monday to support the rouble.
"It is too early to talk about a stabilisation of the
situation, as the tone of statements from American and European
officials isn't weakening," commented ING economist Dmitry
"In these conditions the rouble could easily move further,
especially in advance of the referendum date in Crimea and in
the absence of obvious ways out of the crisis."
For rouble poll data see
For Russian equities guide see
For Russian treasury bonds see
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