Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Is the West Manipulating the Russian Stock Market?

Stock-Markets / Russia Sep 28, 2008 - 01:52 PM GMT

By: Ian_Brockwell

Stock-Markets We have all seen considerable fluctuations on World Stock Markets before, but the recent fall witnessed on the RTS (Russian Trading System/Stock Market) has a hint of more than just a loss of confidence in the companies and Russia.

Since a peak in May of this year, we have seen a drop of 46 percent, creating a loss (on paper) of $700 billion! It seems odd that many of the companies hardest hit appear to be oil companies like: Rosneft, Lukoil and Gazprom.


Obviously, the fall in oil prices has an effect on profits, but this applies to all oil companies, not just Russian ones. Yet for some reason investors feel that Russia´s oil companies are a higher risk?

Some have suggested that the recent deal between BP and TNK-BP has done little to help the situation, but one must understand that doing business in Russia has changed since Boris Yeltsin was in power. Investors are still very welcome, but gone are the days when foreign companies could take an unfair proportion of the profits (especially if it involves Russia´s natural resources). But this rule applies in most other countries as well.

Although the RTS has seen a steady fall since May (also witnessed on other Stock Markets) it is curious that the shares started to tumble at an accelerated rate soon after the Russia/Georgia conflict, although not that quickly afterwards (18 days later to be precise), giving the impression that there was either a delayed reaction, or some pressure was applied to sell?

Many leading figures in the West have commented that the current Stock Market fall will hurt Russia more than any sanctions that the EU could impose, and you have to wonder whether this occurred by accident or design?

If investors are truly worried about the stability of Russia and the companies that have been attracting investment (even when oil prices were lower), why have they waited until now to "panic"?

Everyone knows that the Russian oil market is booming and the demand is still growing at a very healthy rate. For an investor to sell shares in this market can mean one of only three things: They don´t know what they are doing and like losing money. They are being poorly advised about the current situation in Russia, or they are being politically pressured to sell shares that have been very profitable for them.

As unlikely as it seems, the latter appears to be the case. The BP and TNK-BP dispute has been going on for a long time and oil prices have been falling for many weeks, yet this had no additional effect on the Russian Stock Market. Even at the peak of the conflict between Russia and Georgia, the prices remained reasonably stable. So what could possibly have happened in such a short time to change that?

However, there is a "silver lining" to all of this. There is no doubt that the share prices will recover and we can expect to see a sharp increase very quickly, providing some fantastic profits for buyers who are not frightened by the press reports, or maybe "influenced" by politicians.

Whilst the growing financial crisis in the US and Europe will have some effect on Russia, it is safe to say that this will be to a much lesser extent. So if you are looking for a good investment and a generous return, Russia is still a good bet!

By Ian Brockwell
http://www.Profindsearch.com

Ian Brockwell is the creator of Profindsearch.com and interests include writing, teaching, politics, climate change, UFO reports, businesses of all descriptions, medicine and generally trying to enjoy life. Profindsearch is a very small search engine, which hopes to be a Google one day! (We can all dream)

Ian Brockwell Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

john
28 Sep 08, 15:04
Imperialist Manipulation

these is no question that the imperialists have not and will stop at nothing in manipulating whatever they can.


PulSe
06 Oct 08, 14:38
Let them eat oil cakes.

Borcht Slurping Steppe Peasants.


Jose
07 Oct 08, 10:49
Conspiracy theories

Imperialists hahaha you give them way too much credit. Consipracies over the west causing a collapse in the russian stock market. You should write an article about China creating the housing bubble in the USA so they could buy land at a cheap price when the bubble pops.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in