Russian shares rise as Moscow’s stock market reopens

Shares rose in Russia when the Moscow Stock Exchange partially reopened after a trading hiatus of more than three weeks after sanctions sent shares plummeting.

The Moex index rose about 9% in morning trading, with stocks changing hands in Moscow for the first time since February 25th.

Trading resumed in 33 of the 50 stocks that make up the Russian stock threshold, including Gazprom, Sberbank, Rosneft and VTB Bank, to end an abbreviated trade that lasted from 9:50 a.m. to 2:00 p.m. Moscow time.

The resumption of trade comes days after Russia’s central bank took it first steps Settle billions of dollars worth of stock deals by international investors captured when Vladimir Putin introduced capital controls in late February.

Many restrictions remained in place even after the reopening of the stock exchange. The short sale was banned and while local investors were allowed to trade relatively freely, foreign investors were unable to exit the market.

And although transactions in both the US dollar and the ruble could be settled, foreign investors were still banned from selling shares until April 1. All money must remain in Russia even after investors summon money.

The White House attacked the partial reopening of the Moscow Stock Exchange as a “parade” ahead of President Joe Biden’s appearance in meetings with NATO, G7 and EU leaders in Brussels, and vowed that the US would try to further isolate Russia from the world economy As long as Putin continued his war against Ukraine.

“Russia has made it clear that it is going to inject government resources into artificially supporting the shares of trading companies. This is neither a real market nor a sustainable model,” Dale Singh, the U.S. deputy national security adviser, said in a statement Thursday morning. A reopened Potemkin market. “

Moex’s gains on Thursday still left the stock threshold down nearly 30% this year, while the Russian ruble fell about a fifth against the dollar at the time.

The country’s central bank has taken extensive steps to combat the financial instability caused by Western sanctions imposed on Russia, including raising its interest rate to 20 At the end of February.

Last week, the central bank maintained interest rates at this level when it sought to assess the impact of the dramatic tightening on Russia’s economy.

“The main argument in leaving the interest rate unchanged was that the much higher interest rates helped stabilize the financial system by making it less profitable to withdraw money from the banks,” said Ivan Chakrov, an analyst at Citigroup. “The next task e [central bank] It is dealing with managing inflation expectations and the expected rise in price growth. “

On Wednesday, analysts at S&P Global Market Intelligence warned that Russia was facing “its deepest recession since the 1990s”, predicting that gross domestic product would fall by 22% in 2022.

They added that real GDP “is not expected to return to its peak in 2021 until the 2030s”.

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Russian shares rise as Moscow’s stock market reopens Source link Russian shares rise as Moscow’s stock market reopens

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