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. Last Updated: 07/27/2016

Banker Warns of Risk to Capitalization

Market capitalization of leading Russian stocks could fall if economic reforms are set back by the resurgent political left, a leading banker said Thursday.

Boris Jordan, chief executive of Moscow-based Renaissance Capital, told a conference the market capitalization of the 50 stocks in the Moscow Times Index had fallen to $12.72 billion by the end of 1995 from $18.75 billion a year earlier.

He said that if economic reforms continued and the economy began to grow, market capitalization at the end of this year would be between $19 billion and $23 billion.

If, however, economic reforms were set back by "left-wing" parties, the capitalization would be between $10 billion and $19 billion, he said.

Russian stocks were little changed Thursday as foreign investors, worried by an uncertain political situation, held back from buying, traders said.

Shares had slid the previous two days in the wake of Anatoly Chubais' resignation as deputy prime minister for economic policy.

The Moscow Times Index was down 2.43 points Thursday to close at 137.78.