01:02 GMT +319 October 2017
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    RUSSIAN SHARE MARKET: SALES ON, NO PANIC

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    MOSCOW, FEBRUARY 24 (RIA NOVOSTI) - The cabinet dismissal has touched off a wave of sales on the Russian share market, which earlier in the day was active as regards the entire spectrum of shares.

    In the second half of today, the market backtracked and assumed a downward trend towards correction. The unexpected cabinet dismissal news for traders turned correction into appreciable securities sales, resulting in an average 1 to 4 percent loss of their cost.

    Still, experts believe that a larger downfall can hardly be forthcoming because the cabinet dismissal was in principle expectable, though somewhat later. "Strategically speaking, the cabinet was to be different," Trinfico expert Yegor Krotkov told RIA Novosti.

    "The market has been rather costly and this event can be used as a pretext for correction", Megatrustoil expert Alexander Razuvaev believes.

    So far, the market's reaction to the top news of the day is negative expectation, because there is an acute need for commentaries and clarity as regards future developments.

    "We'll wait for commentaries", Krotkov said.

    "For the time being, it is not clear long the effect will last", Atona expert Anatoli Kaplin thinks. In his opinion, the news spells uncertainty as regards reforms in the entire economy and its sectors.

    Still, investors still retain confidence in the preservation of stability and favourable conditions for the growth of the market, although the growth may be suspended for some time.

    "The onward movement can hardly be stopped", Krotkov believes.

    "Some time will pass before the market gets calm and be reconciled to the idea that nothing bad has happened", believes Brokercreditservice expert Maxim Shein.

    In the opinion of Interfintrade analyst Alexei Logvin, the roll back of prices has been speculative. "It is hardly possible that, in the transitional period to the formation of a full-fledged government after the election, the authorities will take steps important for the economy and capable of telling much on the fair assessment of shares", Login in sure.

    As of 18:00, Moscow time, the RTS index subsided by 1.41 percent to 647.61 points. On the classic share market, 286 deals worth 39.6 million dollars were concluded.

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