Russian stock market unaffected

  • 2008-08-13
  • In cooperation with BNS

VILNIUS - The effects of five-day war in Georgiaon Russia's stock markets was far less significant compared with the declinein global crude prices, say Lithuaniananalysts polled by the Verslo Zinios business daily.

The analysts agree that the peace mission of French President NicolasSarkozy and the order of Russia'sPresident Dmitry Medvedev to halt military action in Georgiahave revived Russia'scurrency and stock markets.

Considering the situation on Russia'sstock market, its risks and attractiveness for investments, the experts pointout that the effects of now-ended war, on the market have been less significantthan anticipated.

Russia'smarkets have recently been pressured by a string of bad news, which pulled thestock prices down. Experts mention a conflict between Prime Minister Putin and Russia'ssteel giants Mechel and Euraz.

Currently the funds were being withdrawn from Russia'smarket by those foreign investors, who were unable to do so immediately afterthe eruption of conflict between Moscowand Mechel, Gediminas Milieska, a portfolio manager with SEB InvesticijuValdymas (SEB Investment Management), told the daily.

According to Karolis Pikunas, head of investment management division atOrion Securities, the war in Georgiaforced both small and large-scale stockholders to review their positions in Russia.