The Russian RTS index recouped some of its early losses, but ended down 3.2 percent on Monday and is now down 9.6 percent on the year, making it the worst-performer year-to-date among major global benchmarks together with India. In Mumbai, the benchmark Sensex closed down 3.7 percent, for a 10 percent decline on the year.
Tumbling commodity prices, particularly oil and metals, and a rush to reduce global risk exposure are pressuring the Russian market as well as other emerging markets, which tend to have commodity-driven economies. Falling crude oil will likely pressure energy giants such as Gazprom and Lukoil, while declining gold prices might weigh on the country's leading gold producer Polyus Gold.
"Emotions are still running high with the global rout continuing in commodities and in Asian markets,"Â said Al Breach, a Russia-based analyst at UBS Investment Research, whose Monday note was quoted by MarketWatch. "Look for risk-averse sellers to dominate the flow early as any bullish up-ticks will be met with skepticism."Â
Besides Russia and India, the other BRIC countries were also selling off on Monday. In China, the Shanghai Composite Index, whose 8.8 percent fall last Tuesday triggered a global stock-market sell-off, ended down 1.6 percent, and is now down 4.1 percent on the year. In Brazil, the Bovespa index fell 1.8 percent in intraday trade on Monday, and is now down 6.5 percent on the year. - SOURCE: MosNews
Posted March 9th, 2007 by Armen Hareyan
