Analysts expect new drop in Russian stocks

Today's drop on the Russian stock market is the second wave of decline that started after the RTS index reached its historic maximum of 650 points. There are grounds to believe that this decrease will continue and after a three-day retreat the market will consolidate near the current levels, some analysts told RBC. However, a new drop is possible at the end of November and it will be the last this year, since December is likely to be positive on the whole, they added.

One should not expect growth in the volume of trade. Yesterday's $33m trade volume on the RTS exchange was due to investors who were pulling money out of Russia. They sold what they had bought at the beginning of the year, fixing their profits. Over the next 2 to 3 months the market "will be given to speculators", which might result in broad sideways fluctuations. The situation is unlikely to change before the presidential elections in March, analysts think.