Global sell off continues on Russian markets amidst further trading halts
The Micex was halted for an hour at 11.05 after slumping more than 5%. The RTS then crossed the 5% threshold triggering an hours halt at 14.30
The RTS and Micex went into sell mode from the opening on Thursday with oil down, on expectation a global slowdown could drive demand and prices lower . Brent for November has fallen below $70 BBL with Nymex light Sweet just above $71 BBL, driving Russia’s Urals blend below $70 BBL and adding to fears the Russian Budget may go into deficit earlier than forecast. This sees Gazprom (down 9% on the Micex at the 14.30), Rosneft (down 10%) and Lukoil (down 10%) lower.
Also being hit again are banking stocks with VTB down 3.5% on the Micex at 14.30, and Sberbank down 6.5%. Amongst the other companies being hit are Norilsk Nickel (down 6% at 14.30), RusHydro (down 7%) and Avtovaz (down 14%). Steelmaker Severstal is down 9%, pharmaceutical veropharm is down 6%, Juices and Dairy products maker Wim Bill Dann is down 3%, with Agricultural producer, Razgulay down 9%.
The falls follow in the wake of a 7% fall on the Dow Jones in New York overnight, which has flowed through to major falls in Asia, with the Nikkei slumping 11%, the Hang Seng down 4% and the ASX down 6%. Lunchtime trade in Europe sees the FTSE 100 down 2.6% with the Dax down 2.7% and Cac down 3%.