Russian bourses suspend trading twice as shares soar
19 Sep 2008
Mumbai: Trading on Russia's two main stock exchanges - RTS and MICEX - was suspended twice today after stock prices skyrocketed following a massive government-backed rescue plan.
Trading was suspended when share prices soared minutes after the exchanges opened, market officials said.
Russian market regulator had suspended trading in the stock markets for the past three days following a sharp fall in stock prices earlier this week.
Trading was again suspended for an hour on the the main stock exchanges where stocks skyrocketed an hour after the start of trading.
When trading resumed and the second exchange also opened, prices again surged. The indices of both have shot up more than 20 per cent since the start of the day.
Both exchanges have been ordered to suspend trading again, this time for at least two hours, in a bid to stabilise the market.
Russian banking authorities are expected to have infused up to $20 billion in fresh funds into the banking system, in a combined operation with quasi-sovereign banks to spread liquidity to smaller players.
Russian stocks traded in London rose seven per cent on Thursday, suggesting investors welcomed Russia's moves. A better tone on global markets is also likely to help Moscow's bourses regain strength.