Russian stocks face 20% fall this week

The arrest of YUKOS head Mikhail Khodorkovsky will result in a 20-percent fall on the domestic stock market this week, stock analysts reported to RBC. They forecasted that the RTS index could drop to 500 points on a falling trend for all securities, not only YUKOS and Sibneft and not only oil stocks.

Experts say that Khodorkovsky is a public figure, and his arrest would have a negative impact on the attitude of foreign investors to the Russian market. Therefore, traders expect large sales of Gazprom and LUKoil shares. Analysts also forecasted a fall in energy and telecommunications stocks.

At the same time, some marketers say one should not dramatize the situation. They admit the arrest will worsen the sentiments of investors, since YUKOS is the company with the largest capitalization in Russia. However, it is clear that prosecutors have no claims on the current activities of YUKOS.

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Author`s name Editorial Team