Stock Market Turmoil After Referendum Uncertainty

[➤ GRAZ !]

STOCK MARKET TURMOIL AFTER REFERENDUM UNCERTAINTY

Stockbrokers across the country have been struggling to contain the turmoil that engulfed bourses at the centre of the controversial proposition to designate Menes City capital of Solastella, which came to a head last week. Although ultimately no such shift occurred, stocks in Menes-based corporations had been creeping up on rumours that there would be a surprise shift, while Sierraville companies had seen their stock prices plummet. The SS100 index was dragged down 406 points over the last week to close at 5028, 7% down from 5434, last week’s peak.

After the news came through that the referendum had resulted in an overall no vote, inflated Menes stocks fell sharply, many below their pre-referendum levels while Sierraville stocks saw a minor rebound. The crux of the turmoil, which has involved many larger institutions such as banks and casinos, has since grown to include smaller holdings such as Sierra Air Haulage, a medium-sized air cargo firm. Stock prices have been unpredictable, fluctuating wildly. Some brokers hope that clear, decisive action from Miranda Isle will bring some sense of calm in the markets, which were left flummoxed by the inconclusive result.

Merve Regent, lead analyst from SOLmark, says that the turmoil looked set to continue until the re-opening of the Legislative Assembly later this month, which some critics say is too long for the crisis to continue.

“The crisis in the stock markets is one largely of our own making, but brokers and investors are unsure whether or not to go for companies when it looks like there’s increasing conflict between the two main camps. As the largest trading cities in Solastella, they’re exporting their contagion to other islands. Left unchecked, the disease could make Solastellan firms a no-go for foreign investors.”

“The LA needs to open again soon, and we need confirmation whether this is going ahead or not.” added Marie Cuthbert, governor of Marshtown. “Marshtown stocks have been caught in a wave, and I’ve had business deals falling through the floor.”

Critics were quick to attack Cuthbert’s statements, noting that if her city hadn’t voted overwhelmingly against their neighbour, the referendum wouldn’t have been so close. Cuthbert replies by saying it was ‘cultural’

“Marshtowners and Sierravillians dislike each other. It’s a simple fact. Sierraville costs my citizens millions to transport to. I defend my vote and those of my city.”

Geoffrey Waterman was cooler about the crisis, however. “It’ll deflate itself as soon as we return to normalcy. Markets are speculating about major changes right now - which may or may not happen. Once we get a concrete result either way, we’ll see that they simply revalue stocks as government funding changes and private investment with it. However, the markets are vulnerable right now. If something were to hit it, such as poor consumer spending or a default by a bank, it’s very likely that the entire system could collapse.”

Many had noted the fragility of the stock markets in recent days, with Sir William Dowes calling for greater support from Miranda for the stock market. All eyes are now on the re-opening of the Legislative Assembly.

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