First modification:
The Moex, as the Moscow Stock Exchange is known in the stock market world, resumed operations after a pause of almost a month caused by the development of Russian military action in Ukraine. During the trading, which took place on a partial day on March 24, the Russian stock market posted a 4.4% gain.
The Moscow Stock Exchange index began operations with a jump above 2,760 during the morning but at the close it was below 2,580 integers.
The operations, among other things, were supported by the purchase of shares by the Ministry of Finance, the possible buybacks of securities from the issuers themselves, the increase in the ruble value of exported raw materials and the desire of the participants to enter the market to protect your money in the midst of high inflation.
The Moscow Stock Exchange closed operations on February 25, after Russian President Vladimir Putin announced the start of a special military operation on Ukraine. The imposition of economic sanctions by some Western nations led to a collapse in the value of the shares of the main companies listed on that market.
According to the Russian Interfax agency, 33 of the 50 companies operating on the Moscow Stock Exchange operated on the day, with energy companies registering the highest profits.
Government intervenes to protect the value of shares
The return to trading was carried out under a series of measures taken by the Russian Central Bank (BCR) in order to safeguard operations. Among these, it stands out that it could only be negotiated for four hours and speculative operations such as short sales were prohibited.
Additionally, in order to protect assets from international sanctions, the BCR prohibited foreign investors from selling OFZ Treasury shares or bonds in rubles until April 1. At the same time, the short sale of shares is prohibited, an operation in the financial market where the speculator exchanges shares or other securities that are not his property.
Jeroen Blokland, founder and head of research at investment firm ‘True Insights’ in the Netherlands, pointed out that the interest shown by some investors in the Moscow Stock Exchange could be driven by the conviction that the value of these would reach previous levels. to the conflict.
“Many people seem eager to invest in Russia perhaps based on the idea that its valuation will return to pre-war levels. But that is unlikely to happen, it is very difficult to assign rationales because what we do know is that the sanctions will be around for a long time,” Blokland wrote in a tweet.
The return to operations on the Moscow Stock Exchange comes amid the announcement by some Western nations, including allied countries in NATO, the European Union and the G7, of more economic sanctions against Russia.
On the other hand, the Prime Minister of the United Kingdom, Boris Johnson, stated on March 24 that Russian gold should be targeted, since it could influence Moscow to evade the sanctions imposed.
“There is evidence that the Russians may be trying to circumvent sanctions on their gold, and we are taking steps to try to make sure there are no leaks, no bullion sales in markets around the world,” Johnson said.
With EFE, Reuters and Russian media
#Economy #Russia #Moscow #Stock #Exchange #reopens #month #closure #invasion #Ukraine