London, 29 October 1997 (RFE/RL) - Russian First Deputy Prime Minister Anatoly Chubais said today that Russia's stock market, which rebounded today from heavy losses yesterday, should continue to grow over the next year. Chubais said Russian shares were not overpriced and the rise in stock values would continue.
Chubais, who is also Russia's finance minister, was speaking to journalists in London where he is on a three-day visit.
Chubais said the Russian stock market, one of the world's best performers after soaring 150 percent this year, should attract some of the funds fleeing southeast Asia. But he also acknowledged the Russian market was sensitive to fluctuations in other world bourses.
Leading Russian stocks rallied in early trading today after suffering an almost 20 percent loss yesterday following similar dips on other world stock exchanges.
Elsewhere, European stock exchanges rebounded in morning trading today following yesterday's unexpected rally on Wall Street and today's rallies in Asian markets. Stock prices in Frankfurt and Paris were up more than 3 percent at mid-day. In London, the FTSE-100 index was up about 2 percent while stocks in Milan were up about 8 percent at midday.
Traders in Warsaw, Budapest and Moscow say they expect their exchanges to rebound soon as investors may be tempted by lower prices after yesterday's record declines. The currencies of Poland, Hungary and the Czech Republic were slightly stronger today. Moscow's RTS index of 21 firms rallied in early trading but reportedly was down another two percent by midday. The RTS fell 19 percent yesterday.
Earlier today, Hong Kong's Hang Seng index closed up almost 19 percent, recovering nearly two-thirds of what it had lost in the past eight trading days. Shares were also up, though less sharply, in Japan, Australia, South Korea, Singapore, Malaysia and the Philippines. But analysts warn that it is too early to tell whether turmoil in the global equities markets has subsided. They say it's possible that rapid rebounds could lead to more instability.
In the U.S., stocks continued their climb today, pushed higher by assurances from Federal Reserve Chairman Alan Greenspan that recent economic turmoil in Asia would not endanger prosperity in the United States.
The Dow Jones average of 30 leading industrial stocks rose about 100 points, or more than 1 percent, in the first hour of trading. The Dow Jones average yesterday rose 337 points -- or almost 5 percent -- in its biggest one-day gain ever.