Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
IBM - Investing in AI Machine Intelligence Stocks - 25th May 19
Seasonal Dysfunction: Why Generations of Gold and Silver Investors Are Having Such Difficulty - 25th May 19
Employment - The Good and the Bad of Job Automation - 25th May 19
Gold Mining Mid-Tier Stocks Fundamentals - 25th May 19
Buy This Pick-and-Shovel 5G Stock Before It Takes Off - 25th May 19
China Hang Seng Stocks Index Collapses and Commodities - 24th May 19
Costco Corp. (COST): Finding Opportunity in Five Minutes or Less - 24th May 19
How Free Bets Have Impacted the Online Casino Industry - 24th May 19
This Ultimate Formula Will Help You Avoid Dividend Cutting Stocks - 24th May 19
Benefits of a Lottery Online Account - 24th May 19
Technical Analyst: Gold Price Weakness Should Be Short Term - 24th May 19
Silver Price Looking Weaker than Gold - 24th May 19
Nigel Farage's Brexit Party EU Elections Seats Results Forecast - 24th May 19
Powerful Signal from Gold GDX - 24th May 19
Eye Opening Currency Charts – Why Precious Metals Are Falling - 23rd May 19
Netflix Has 175 Days Left to Pull Off a Miracle… or It’s All Over - 23rd May 19
Capitalism Works, Ravenous Capitalism Doesn’t - 23rd May 19
The Euro Is Bidding Its Time: A Reversal at Hand? - 23rd May 19
Gold Demand Rose 7% in Q1 2019. A Launching Pad Higher for Gold? - 23rd May 19
Global Economic Tensions Translate Into Oil Price Volatility - 22nd May 19
The Coming Pension Crisis Is So Big That It’s a Problem for Everyone - 22nd May 19
Crude Oil, Hot Stocks, and Currencies – Markets III - 22nd May 19
The No.1 Energy Stock for 2019 - 22nd May 19
Brexit Party and Lib-Dems Pull Further Away from Labour and Tories in Latest Opinion Polls - 22nd May 19
The Deep State vs Donald Trump - US vs Them Part 2 - 21st May 19
Deep State & Financial Powers Worry about Alternative Currencies - 21st May 19
Gold’s Exciting Boredom - 21st May 19
Trade War Fears Again, Will Stocks Resume the Downtrend? - 21st May 19
Buffett Mistake Costs Him $4.3 Billion This Year—Here’s What Every Investor Can Learn from It - 21st May 19
Dow Stock Market Trend Forecast 2019 May Update - Video - 20th May 19
A Brief History of Financial Entropy - 20th May 19
Gold, MMT, Fiat Money Inflation In France - 20th May 19
WAR - Us versus Them Narrative - 20th May 19
US - Iran War Safe-haven Reasons to Own Gold - 20th May 19
How long does Google have to reference a website? - 20th May 19
Tory Leadership Contest - Will Michael Gove Stab Boris Johnson in the Back Again? - 19th May 19
Stock Market Counter-trend Rally - 19th May 19
Will Stock Market “Sell in May, Go Away” Lead to a Correction… or a Crash? - 19th May 19
US vs. Global Stocks Sector Rotation – What Next? Part 1 - 19th May 19
BrExit Party EarthQuake Could Win it 150 MP's at Next UK General Election! - 18th May 19
Dow Stock Market Trend Forecast 2019 May Update - 18th May 19
US Economy to Die a Traditional Death… Inflation Is Going to Move Higher - 18th May 19
Trump’s Trade War Is Good for These 3 Dividend Stocks - 18th May 19
GDX Gold Mining Stocks Fundamentals Update - 17th May 19
Stock Markets Rally Hard – Is The Volatility Move Over? - 17th May 19
The Use of Technical Analysis for Forex Traders - 17th May 19
Brexit Party Set to Storm EU Parliament Elections - Seats Forecast - 17th May 19
Is the Trade War a Catalyst for Gold? - 17th May 19
This Is a Recession Indicator No One Is Talking About—and It’s Flashing Red - 17th May 19
War! Good or Bad for Stocks? - 17th May 19
How Many Seats Will Brexit Party Win - EU Parliament Elections Forecast 2019 - 16th May 19

Market Oracle FREE Newsletter

U.S. House Prices Analysis and Trend Forecast 2019 to 2021

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

Ian Brockwell is the creator of 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

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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.

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

Borcht Slurping Steppe Peasants.

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

6 Critical Money Making Rules