(BFM Bourse) – Guest on the popular Russian YouTube channel RBK Investissements (or “РБК Инвестиции” in the text), stock market strategy expert Alexander Butmanov raised his glass – his bottle in fact – in memory of the – according to him- defunct Moscow Stock Exchange.
Time of death: Wednesday, March 2, around 2:30 p.m. Victim: the Moscow Stock Exchange. In a live broadcast on the Russian YouTube channel “RBK Investments” specializing in financial markets, a local market expert delivered a eulogy for the Moscow stock market, which has been closed since Monday and at least until Friday.
In a special program (“Trading in a new way”) devoted to operations on the Russian markets, but also to the securities of Russian companies listed abroad, the economist Alexander Butmanov, also founder of the Soyuzniki Investment Club and expert in stock strategies, had a shot at the “death of the stock market” – at 2’30” in this video. Taken aback, host Elina Tikhonova said she would not comment on this “flash mob”.
Important clarification provided by Russia specialist Benoït Vitkine: RBK once belonged to the so-called liberal media, which is therefore independent, but its editorial line has since evolved to align with that of the Kremlin.
The full swap:
– (Journalist): Today with us in the studio, we receive Aleksandr Butmanov, founder of the investment club “Allies” and expert in stock market strategy. Aleksandr, hello.
– (Aleksandr Butmanov): Hello, I’m not going to say “good day”.
– (Journalist): Yes, no one says it anymore. Stock market strategy today – is it atavism or do you still hope to stay in the industry?
– (Aleksandr Butmanov): In the worst case, I will work as Santa Claus [“Ded Moroz” dans le texte, l’équivalent slave du père Noël occidental, NDLR] like 25 years ago.
– (Journalist): Well, it’s only once a year…
– (Aleksandr Butmanov): Joking aside, let me do this quickly. I salute Sergey Usichenko, who 12, 13 years ago was drinking to the death of the stock market. Today I drink soda. Dear stock market, you were close to us, you were interesting to us. Rest in peace, dear comrade.
The expert was thus referring to this sequence broadcast on Russian TV in January 2009 in which we can see another economist, Sergey Usichenko burying the Russian market with a shot of vodka. The broader RTS index (the Russian equivalent of the S&P) had then fallen by more than 2,500 points in January 2008… to 500 points six months later, while the Russian economy was bearing the brunt of the financial crisis, in particular the collapse of oil prices having led to a liquidity and credit crisis, while the Russian giants were heavily indebted.
The Russian state, which had then ceased to intervene on the stock and currency markets in an attempt to stem the slide in Russian stocks and the (already) ruble, had been forced to bail out several banks in a hurry .
If the Russian central bank has this time taken the decision to interrupt stock trading in Moscow, since Monday and at least until Friday, the main indices of the Moscow market had experienced the worst session in their history this Thursday, February 24, on the first day of the Russian offensive in Ukraine. The RTS Index then dropped more than half of its value in one day (-50.1%) when the flagship index, the Moex, plunged 45%.
(Our warm thanks to Liv Audigane and Olivier Bories for the French translation of the comments exchanged on RBC Investments)
Quentin Soubranne – ©2022 BFM Bourse