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. Last Updated: 07/27/2016

Indices Down 8% as Worries About Global Markets Loom

Russian share indices closed down about 8 percent Wednesday as worries about the stability of global markets and the summer vacation season left the market unsupported, dealers said.

"The market's really soft. ... Interest is generally low at this point in the summer, but it is even worse now because of the shaky situation on world markets," one Western trader said.

He said the acceleration of losses in recent days was prompting some investors to reduce their Russia weightings, but added that "the money and interest should come back in the autumn once everyone has reopened for business."

The benchmark RTS1-Interfax share index, covering the main over-the-counter market, finished down 7.88 percent at 105.46 on steady volume of $10.9 million.

The broader Reuters Russian composite index fell 7.79 percent to 394.30.

The dollar-denominated Moscow Times Index of 50 leading shares fell 6.76 percent to 80.93 on turnover of $12.828 million.

The market has barely reacted to news of foreign debt talks, including recent deals with the Paris Club of country creditors and the International Monetary Fund and Tuesday's postponement of talks with the London Club of commercial creditors.

Moscow brokerage MFK Renaissance said it expected the market situation could slowly fall in the near future.

"With the summer doldrums in full swing and restructured GKO [treasury bill] funds apparently staying away from equities, the Russian equity market appears poised to continue to drift downward," it said in a Wednesday report.

Leading Russian shares all saw significant losses with national power grid Unified Energy Systems closing down 7.89 percent at $0.0759 while sister utility Mosenergo shed 7.55 percent to $0.0310.

LUKOIL, Russia's largest oil producer, fell 3.9 percent to $8.00 and Surgutneftegaz dropped 7.97 percent to $0.1675.