Russian markets in stop-start trading as stock soars (1st Lead)

Sep 19, 2008, 11:59 GMT

Moscow - Trade on Russia's leading RTS index was arrested for a second time on Friday, after stocks soared uncontrollably following deep lows earlier in the week.

Regulators moved to halt trading on the dollar-denominated RTS at 1.55 pm Moscow time (10.55 GMT) after re-starting following an earlier closure in on Friday, as share prices exceeded the 15 percent gain on opening threshold needed to trigger the close.

The ruble-denominated MICEX had also been shut temporarily on Friday following a 26 per cent spike since opening.

The RTS says it will resume trading at 4.55 p.m Moscow time.

The strong but unstable rallies came as the markets reopened following a two-day suspension of trading to stop the nation's worst financial crisis since the 1998 default.

The Kremlin pledged 1.13 trillion rubles (44.37 billion dollars) to bolster the market including an extra 60 million rubles (2.36 billion dollars) to Russia's three largest banks, starved for funds.

Trading was closed on both exchanges from Wednesday when the indexes fell over 25 per cent in the first three week days, until Friday morning.

Russia's RTS, a world-leading performer the last few years, had dropped 57 per cent since soaring to record heights in May.

The MICEX exchange is now at its lowest level in nearly three years in the wake of sliding oil prices, turmoil on Wall Street and capital flight amid political uncertainties after Russia's war with Georgia last month.