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Russian trading floors slumped to close sharply lower Thur

The leaders of the fall today were companies of the metallurgical sector and energy

MOSCOW, September 22 (Itar-Tass) —— Russian trading floors slumped before Thursday close. The MICEX average fell 7.82 percent to 1,389.43 points and the RTS index, 8.61 percent to 1,387.86 points.

The leaders of the fall today were companies of the metallurgical sector and energy. The ordinary shares of NLMK and MMK declined by more than 12 percent, and MRSK Holding, OGK-2 and FSK UES, more than 11 percent.

In the first half of the day the market showed no signs of a looming landslide. However, after the release of negative statistics for the euro area the indices accelerated the decline sharply.

"Fears of an impending recession, coupled with a lack of new cash infusions did their job, and bidders began to get rid of the assets en masse," said a senior analyst at IFC Solid, Elsa Bikchurina.

Such a drop in the market limits its further decline, says RIC-Finance analyst Mikhail Fyodorov. In his view, for a further reduction to occur there will have to be more important bad news.

"But on the other hand, there is nothing that could encourage markets to grow. In view of this, one should not expect a significant rebound in the market: most likely, the MICEX index in the coming days will be at a level of 1,400-1,450 points," Fyodorov said.

The deputy head of the trust management division at Absolut Bank, in turn, believes that the market underestimated the measures taken by the U.S. Federal Reserve.

"It is likely that the players will return to this issue, sort things out, and find positive factors that will contribute to positive dynamics," he said.