Russian Stocks Hit Fresh Lows

Russian stocks hit fresh lows in Thursday afternoon trading as political uncertainty in Greece and Europe’s lingering debt crisis prompted investors to dump riskier assets.

By 2:19 p.m. Moscow time (10:19 GMT), the ruble-denominated MICEX had fallen by 2.6 percent below the psychologically important level of 1,300, and hitting an eight-month low, while the dollar-denominated RTS had plunged by 2.8 percent to 1,335.57 points, the lowest level since early October 2011.

Investors’ fears about the spread of the political crisis in Greece continue to drive increased investor risk aversion and slumping capital markets worldwide, including Russia. Thursday’s fears have been added to by news that the European Central Bank has stopped proving extra liquidity to Greek banks until they implement recapitalization plans.

In the foreign exchange market, the euro is trading at slightly above $1.27 and may extend further losses. The price of Brent crude, a benchmark for the Russian stock market, has also continued to fall further, below $110 per barrel.


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