On Thursday, domestic plays extended their losses on growing concerns about the scope of the crisis on the US mortgage market. All stock exchanges across the board were hit by heavy waves of sell-offs. Specifically, Wednesday the Dow gave up over 1.5%, dragging all liquid names down 1.5-2% at the opening bell. Throughout the session losses deepened on the back of the weakness in global stock indexes. US new home data released in the second half of the day missed consensus forecast, sending a signal about a possible escalation of the crisis. By Thursdays final bell, the MICEX Index retreated 2.46%, falling below the 1,600 mark (1,599.39), while the RTS Index dropped as much as 3.53%, finishing at 1,820.30.Crude futures declined on expectations of an emerging economic slowdown in the US. However, O&G plays tumbled as deep as some benchmarks: Gazprom Neft sank 3.95%, Lukoil pulled back 2.47%, Surgutneftegaz eased 2.1%, Gazprom dipped 1.82%, Tatneft ended 1.75% lower and Rosneft sagged 1.61%. Financial stocks headed south for a third consecutive day, as they are primarily sensitive to the problems faced by the American mortgage market and insufficient liquidity on global financial markets. Sberbank commons tumbled a hefty 4.22% and prefs sank 3.07%, whereas VTB ended 3.43% lower, trading 13% below the IPO price. UES stocks outperformed the market: commons gained 1.53% and prefs edged up 0.53% on MICEX. UES shares have approached the price levels, at which the holding will be buying stocks from shareholders who object to its restructuring and their subsequent downside potential looks extremely limited. Other liquid stories performed as follows on MICEX: MTS lost 3.92%, Rostelecom was off 1.32% and Norilsk Nickel decreased 3.16%. The decline in the metal majors equities deepened on falling nickel prices. Turnover climbed to $8,431.87 mln on MICEX and dropped to $69.29 mln on RTS.
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[Source: Russian Stock Market Blog]
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