A view of the Moscow Exchange office in Moscow on March 24
(Picture: AFP via Getty Images)After its longest shutdown since the fall of the Soviet Union, Russia’s stock market partially reopened this morning following a one month closure.
Dealing in 33 key stocks that that make up the rouble-denominated Moex Russia Index resumed this morning.
Trading in stocks including Russian energy giants Gazprom, Rosneft and Lukoil, metals giants Nornickel and Rusal, and Russia’s national carrier airline Aeroflot all restarted.
The country’s largest banks Sberbank and VTB, which are currently under US sanctions, also began restricted trading.
Foreign investors will not be allowed to buy or sell shares on the Moscow Stock Exchange until 1 April and short-selling is banned.
During the first four hours of trading, the Moex index rose by 8%. Rosneft and Lukoil gained 20% and 17% while Nornickel was up 17%. Stocks that fell included airline Aeroflot, which dived 10%.
Victoria Scholar at Interactive Investor said: “Russia’s stock market plummeted in February as tension between Russia and Ukraine escalated. Today’s rally only erases a small fraction of the prior losses with another approximately 50% upside to retest the 2022 highs.
“The short-selling and foreign selling ban has also provided a ‘put’ in the market, capping further downside.”
In an effort to aid the recovery of the ailing market, the Russian government has pledged to spend the equivalent of $10 billion to back shares in Russian companies.
The exchange closed its doors on 25 February, a day after President Vladimir Putin sent thousands of troops to invade Ukraine.
Moex started a phased re-opening on Monday (21 March) with trading in federal government bonds, following the longest suspension in trading since the fall of the Soviet Union.
“What we’re seeing is a charade: a Potemkin market opening,” US deputy national security advisor Daleep Singh said.
“Meanwhile, Russia has made it clear they are going to pour government resources into artificially propping up the shares of companies that are trading.”
