After a month of hiatus reopened the Moscow Stock Exchange, closed since February 25 in order to contain the potentially devastating effects of the conflict in Ukraine. Trading resumed today, only for a few hours and only on some stocks, with very stringent conditions that prompted the US to speak openly of a "farce"
Moscow Stock Exchange - the longest closure in history
That of the Moscow Stock Exchange was the longest shutdown ever in history of the financial markets. Suffice it to say that the previous record belonged to Wall Street which, after the attack on the Twin Towers on September 11, 2001, remained closed until September 17. This time we are instead faced with almost a month long suspension. The last day of trading was in fact February 24, start day of the invasion of Ukraine, in which the main index of the Moscow Stock Exchange lost 33 percent of its value, with the main listed companies experiencing an unprecedented collapse. In a few hours they came burned more than 190 billion dollars.
The conditions for reopening, Usa: "A farce"
At the disposal of the Russian Central Bank, the Moscow Stock Exchange reopened its doors today at 9.50, but with reduced hours. The indices closed at 14 (12 in Italy). The start of trading concerned only 33 of the 50 shares listed on the moex, the main index. No short selling as well as the ability for foreign investors to liquidate the stakes they hold in Russian companies. Not only that, according to the provisions, all proceeds from the operations must remain in Russia.
“What we are witnessing is a farce”, commented the US deputy national security adviser for the international economy, Daleep Singh. “After keeping its markets closed for nearly a month, Russia has announced it will only allow 15% of its listed shares to trade, foreigners are prevented from selling their own shares and short selling in general has been banned. Meanwhile, Russia has made clear it plans to inject public resources to artificially support the actions of companies admitted to trading. This is not a real market and it is not a sustainable model, which only underscores Russia's isolation from the global financial system."
Moscow Stock Exchange - how was today
Between very strong fluctuations and high volatility, the Moex, the main index of the Moscow Stock Exchange closed the day with a rise of 4,43% to 2.579,99 points. The index Rts denominated in dollars, which includes 50 of the most liquid shares (many of which are also traded on the Moex) instead lost 8,95%, falling to 853,13 points.
Double-digit increases for the titles of the big giants: Lukoil gained 12,41%, Gazprom 13,38%, Lukoil 16,97%. Bank shares contrasted: Vtb closed the day with a drop of 5,5%, Sberbank instead recorded a rise of 3,9% after reaching +19%.
Separate chapter for Severstal which, after an upward start, closed the day with a loss of 2,66%. The Russian steel giant claims to have paid the 12,6 million coupon at the end of the grace period, but even in this case the money has not yet reached the creditors. If the payment fails, Severstal could be the first major default in Russia after the sanctions.
