Situation in Russia’s Stock Exchange Market can Stabilize Only for Several Months: Expert
Azerbaijan, Baku, 18 September/ Trend , corr A. Badalova/ At the order of the Federal Financial Markets Service (FFMS) of Russia, it is banned to carry out marginal trade and conclude short-term sale deals on securities without guarantee.
The transactions in RTS and MMBP were suspended on 17 September as a result of the failure of shares in the Russia stock markets. Index of RTS was closed by incurring losses of 6.39%b and MMBP - 3.09%.
The fall in prices in Russian stock exchange market shows crisis of trust and panic of the participants, Nataliya Orlova, senior economist of Alfa Bank, one of the largest banks of Russia said.
"Besides, there were a lot of compulsory sales," Orlova said to Trend by e-mail.
"The stabilization of situation in bank sector is important to prevent crisis of trust. In this case, stock exchange market can revive within the next few weeks and return to previous level," she said.
"The crisis of liquidity in the monetary market of Russia prompted by the lack of free finance of Russia's investment companies should be handled so that to calm down sale and stabilize situation in the stock exchanges," Aleksandr Potavin, deputy director AntantaPioglobal investment group said.
The Russian investors should observe closely the deals concluded in the sector of Russian ADR (American Depository Receipts) in London where quotations went up recently, he said.
Central Bank of Russia must take steps to stabilize trust in bank sector, Orlova added.
"It would be better to reduce fund of compulsory reserves at least twice. It would give banks 200bln roubls," she said.
The correspondent can be contacted at: [email protected]