Russian capital market tumbles
The Russian stock exchange RTS yesterday fell more than five percent and the joint value of the Russian stock companies dropped below one trillion USD, the lowest in more than a year. Analysts believe the conflict with Georgia is to blame.
With memories of the 1998 dramatic devaluation, Russians now fear another Russian economic downturn. Foreign investors now feel an increasing unease with the Russian market, newspaper Kommersant reports. They now fear that an emerging conflict between Russia and western countries could be a major blow to the last year’s positive economic development in Russia. According to analyst Arno Kukk from the Uralsib company now says to Kommersant that he does not exclude another 10 percent fall of the RTS. Yesterday the Stock exchange dropped 5,21 percent to the lowest since November 2006. Also energy companies like Gazprom and Rosneft fell seriously.
