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. Last Updated: 07/27/2016

Shares Firm After State Duma Furor Ends




Russian shares closed firmer Thursday for the first time in three days as fears over a parliamentary split faded and investors saw the market bottoming out, traders said.


The dollar-denominated Moscow Times Index of 50 leading shares rose 6 percent to 148.20 on turnover of $29.859 million.


The key RTS1-Interfax shares index rose 4.65 percent to end at 192.16 on reduced but healthy volume of $26.3 million as buying was more cautious than in recent weeks.


The broader Reuters Russian composite firmed 5.81 percent to 1,277.49.


"It was pretty clear the market overreacted to the conflict in the State Duma. ... Some investors just used the dispute as an excuse to take profits," one Western trader said.


"Most investors now don't really think the market is going any lower and are still confident about the long term so they are buying again and pushing prices back up."


Investors reacted badly to a deal between the Communists and pro-Kremlin Unity bloc in which the former Duma speaker, Communist Gennady Seleznyov, returned to the chair and Unity took control of key committees in the legislature.


But while traders said the short-term could be bumpy, they dismissed concerns about the recent drop saying it was a chance for new investors to get into the market.