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Moscow suspends trading
Financial Times ^ | 9/18/08 | By Catherine Belton and Charles Clover in Moscow

Posted on 09/17/2008 9:51:49 PM PDT by BurbankKarl

The Russian government was facing one of the biggest tests of its market economy on Wednesday after it was forced to close its two main stock exchanges to halt a market rout that has led to the steepest declines since the August 1998 crisis.

The two main bourses, the MICEX and RTS, said they were suspending trading until further notice from the state’s main financial regulator.

The move came after shares began to tumble again as investors faced a new wave of forced equity sales on margin calls and a dearth of cash. They had not reopened by close of business.

Government and central bank officials were locked in talks with the chief executives of Russia’s biggest investment banks throughout most of the day on ways to halt the market collapse, which has wiped nearly $800bn (£440bn) off the country’s stock exchanges in a matter of months and sent stocks spinning down to levels last seen in 2005.

Vladimir Putin, Russia’s prime minister, and Dmitry Medvedev, its president, met to discuss the crisis of confidence and liquidity which was threatening to spread into the real economy amid rumours that more than one bank was failing to make payments to counterparties.

Chris Weafer, chief strategist at Uralsib investment bank in Moscow, said: “If the government gets this wrong, the risk is that people will lose confidence in the banking system, will slash spending and put their cash in the only place they feel safe – the mattress”.

(Excerpt) Read more at ft.com ...


TOPICS: Business/Economy; News/Current Events; Russia
KEYWORDS: econmy; geopolitics; globalism; russia; trade
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1 posted on 09/17/2008 9:51:49 PM PDT by BurbankKarl
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To: BurbankKarl

Maybe Putin should invade the stock exchange with tanks.


2 posted on 09/17/2008 9:54:55 PM PDT by reaganixonbush
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To: hiredhand

FYI.......:o)


3 posted on 09/17/2008 10:02:31 PM PDT by Squantos (Be polite. Be professional. But have a plan to kill everyone you meet)
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To: BurbankKarl

Damn, we get the financial flu. Russia’s exchange gets ebola. Wonder how the Chinese are feeling right about now. ;)


4 posted on 09/17/2008 10:02:35 PM PDT by Centurion2000 (McCain/Palin 2008 : Palin the Paladin 2012)
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Comment #5 Removed by Moderator

To: Centurion2000
Damn, we get the financial flu. Russia’s exchange gets ebola. Wonder how the Chinese are feeling right about now. ;)

Probably pretty good, as the export market for poisoned products continues to thrive.
6 posted on 09/17/2008 10:06:27 PM PDT by mkjessup (I'm not a Community Organizer, but I did stay in a Holiday Inn Express last night!)
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To: F15Eagle

It is called the Georgia Dividend.

Paid back with interest for the rapes and the murders of the innocent.

Wait long enough, Georgia may end up owning Russia Lock Stock and barrel.


7 posted on 09/17/2008 10:17:37 PM PDT by dila813
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To: BurbankKarl

Some of their heavier investors are getting jittery. We should encourage that, by all means.


8 posted on 09/17/2008 10:25:35 PM PDT by onedoug ( Barracuda!)
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To: BurbankKarl

Russia’s big investors are pulling out in droves...

Their stock market has seen a loss of $800 billion since June.


9 posted on 09/17/2008 10:31:05 PM PDT by jerry557
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To: dila813

I think the Azerbaijanis and the Turks would like to get in on that.


10 posted on 09/17/2008 10:34:18 PM PDT by onedoug ( Barracuda!)
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Comment #11 Removed by Moderator

To: BurbankKarl

Funny how I’ve been hearing so much about the drop in the wall street markets today, but absolutely no mention of this.


12 posted on 09/17/2008 11:08:02 PM PDT by smokingfrog (He that lives upon hope will die fasting. - Ben Franklin)
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To: F15Eagle
I think Putin is a very dangerous man.

I just hope he can't pull a Reagan...on us.

13 posted on 09/17/2008 11:24:49 PM PDT by onedoug ( Barracuda!)
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Comment #14 Removed by Moderator

To: BurbankKarl

Ukraine halted trading twice last week.

Stocks Trading Halted in Kiev

12 September 2008

KIEV — Trading on Ukraine’s stock market was suspended for the second time in a week after the benchmark PFTS Index slumped as much as 6 percent Thursday.

http://www.themoscowtimes.com/article/1009/42/370876.htm


15 posted on 09/17/2008 11:32:42 PM PDT by Freedom_Is_Not_Free
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To: BurbankKarl

So is this the 2nd time in 2 days. Russia stopped trading on Tuesday as well. This type of activity — halting markets 2 days running — has the smell of a depression.

Russia halts trading after 17% share price fall

By Catherine Belton and Charles Clover in Moscow and Rachel Morarjee in London

Published: September 16 2008 15:07 | Last updated: September 16 2008 19:11

Russian shares suffered their steepest one-day fall in more than a decade on Tuesday, losing up to 20 per cent, as a sharp slide in oil prices and difficult money market conditions triggered a rush to sell.

The heads of the Russian central bank, the finance ministry and the financial market regulator met on Tuesday night for an emergency discussion on ways to halt the crisis.

http://www.ft.com/cms/s/0/6ff9306c-83f1-11dd-bf00-000077b07658.html?nclick_check=1


16 posted on 09/17/2008 11:35:31 PM PDT by Freedom_Is_Not_Free
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To: F15Eagle
I'll say.

Best....

17 posted on 09/17/2008 11:45:13 PM PDT by onedoug ( Barracuda!)
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To: dila813
It is called the Georgia Dividend.

Do you really believe that 1. Georgia has bancrupted Lehman Brothers and others 2. the USA isn't suffering from the crisis in any way?

18 posted on 09/17/2008 11:52:20 PM PDT by Freelance Warrior (A Russian.)
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To: smokingfrog

well, that was just $800 billion is losses.....I am sure the US is in the trillions....or googleillions.


19 posted on 09/18/2008 12:12:40 AM PDT by BurbankKarl
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To: F15Eagle
That being said, if Russia destabilizes via their stock market decline and falling oil, they may pull something even more drastic.

Russia's collapse may leave the Russian Federation holding thousands of tanks and billions of gallons of oil. Wonder how they will feed their people with those assets ?

20 posted on 09/18/2008 2:25:00 AM PDT by justa-hairyape
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