Russian stocks lose $10 billion in value
UPI - Thursday, December 09, 2004
Date: Thursday, December 09, 2004 6:35:54 PM EST
MOSCOW, Dec. 9 (UPI) -- Nearly $10 billion was wiped off Russian stocks Thursday, the Moscow Times reported.
The huge fall was caused by investors' fears that a surprise $158 million tax claim against Russia's No. 2 mobile phone operator VimpelCom signaled a new arbitrary onslaught against private business, the paper said.
The RTS stock index plummeted 5 percent, sending it down 10 percentage points in just two days to close at 546.1. The steep decline sent it below its Jan. 1, 2004, level, reversing the rapid growth trends of recent years that have seen Russia outperform most other emerging markets.
"International investors are radically changing their view of Russia," Alexander Kim, equity strategist at Renaissance Capital told the Moscow Times. "They are reassessing the risk premium for the country and we are seeing a massive reduction of position."
Investors have already been spooked over the Kremlin's protracted legal onslaught against oil major Yukos, which faces breakup in a Dec. 19 auction of Yuganskneftegaz, its key production unit, over $20 billion in outstanding tax bills. The move against VimpelCom appeared to dash previous hopes that the attack on Yukos was an isolated case, the Moscow Times said.
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