Global concerns effecting the local currency
San Francisco, CA -- (SBWIRE) -- 03/08/2013 -- The Russian stock market indexes turned downward at the start of the week, plummeting to new lows for the still-young year. Shares in aluminum producer RUSAL continued to fall after the 2012 results exposed a steep decline in earnings.
The rouble-denominated MICEX fell 0.2% to 1470.5, with the dollar-based RTS continuing down to 0.4% to a 1504.2 tally.
RUSAL was the largest loser on the board. Its Hong Kong shares were down 3.4%, while Moscow-listed depositary receipts noted a 2.6% drop.
Rusal 2012 full-year earnings report exposed a 63% fall in the adjusted EBITDA. Even with such a substantial loss, it was better than many analysts had forecasted. That did not save the stock overall, however.
Sberbank Investment Research analysts noted a fourth-quarter earnings reports could assist in boosting Russian stocks. Particularly in the event of a positive surprise, gain was truly possible.
"There will be opportunities for both positive earnings statements and dividend indications. Neither is enough to boost the Russian market against a weak global backdrop, but they are factors that can differentiate stock performances," they wrote.
The rouble had fallen back on Monday, and it was a in keeping with the general trend at the start of the month following Russian exporters paying the end-of-month taxes.
Early in the morning, the rouble fell 0.3% to a 30.79 when against eh dollar. Another 0.1% to 40.02 against the euro was also felt, which left the rouble at 0.2% weaker against the dollar-euro basket.
The rouble is now being affected by the rising risk-aversion tactics being promoted by many major players in the global market. Political stalemates still hold firm in the U.S. As well, and there is a renewed fear across the globe about the overall economy. All of which affects the rouble, which continues to suffer.
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