Regulators halted trading at midday (9am BST) on Russia’s main stock indices – the rouble-denominated Micex and the dollar-denominated RTS – following a similar suspension yesterday.
Russia has been badly affected by the global financial crisis, and has suffered as stocks have sunk in Europe and Asia. But it has also been hit by the rapid fall in oil prices and the flight of foreign investors since the war in Georgia.
Of course had we not bailed out AIG last night, we could have seen something similar in the US, UK, Tokyo etc as a number of institutions fell apart. I was watching shares in my local bastard monopoly electric company Consolidated Energy Group (CEG) yesterday. CEG was tied to Lehman and rumors had some exposure to AIG that would have dragged them through the mud. Their company, which has about $15 billion worth of nuclear power plants suffered from some massive shorts and saw the stock drop from about 60 to 13 in a matter of minutes, then up again, then down. It was really strange.
More excitement today as I deal with a quick sale of Washington Mutual stock (WM).]]>