Russian Trading Halted After Sharp Shares Drop

Moscow, Russia (AHN) - Russian regulators halted trading on two major stock exchanges Tuesday after negative reaction to the failed $700 billion U.S. bailout package caused a sharp drop in stock prices.

The Federal Financial Market Service ordered the ruble-dominated MICEX exchange to suspend trading until 12:30 p.m. local time or (0830 GMT).

Minutes after the bell opened trading, MICEX shares went on a tailspin led by gas monopoly Gazprom dropping 7.8 percent, oil major Lukoil by 7.5 percent and state-controlled lender Sberbank by 7.6 percent. State-backed VTB bank shed 7.1 percent. The exchange's overall index was down by 1.07 percent when trading was suspended.

The government also halted trading on the dollar-dominated RTS minutes after opening.

Russia's financial market, which has been one of the world's most robust and lucrative early this year, saw its shares in sharp decline the past weeks, due to the trouble facing the international market and its brief war with Georgia on Monday.

On Sept. 19, regulators also halted trading for two days.

UralSib, a bank based in Moscow reportedly told investors that globally investors, including those in Russia, are running from risk.