Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

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

© 2005-2019 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