What is the status of Russian Stock Market right now?

What is happening to the Russian stock market after the invasion of Ukraine?

After Russia invaded Ukraine, the Russian stock market crash has left most Russian ETFs in an “unprecedented” position after most European exchanges suspended trading. While the Russian stock market has become so illiquid that ETFs have shut down most businesses, mutual funds have also been forced to shut down.  

Exchange-traded funds (ETFs) remained one of the few ways to enter Russia after Western sanctions against Moscow’s invasion of Ukraine, as they continued to trade even as liquidity in the underlying assets dried up, although that made it difficult to pin down the correct value. Like other ETFs open to Russia, ETFs available to Russia temporarily suspended new offerings, while the London Stock Exchange and Deutsche Börse (DB1Gn.DE) froze trading in several certificates of deposit. The exchange suspended trading in VTB Capital, a subsidiary of Russia’s second-largest bank VTB.    

How about london stock?

The London Stock Exchange suspended trading in 27 companies with close ties to Russia, including energy and banking companies Gazprom and Sberbank of Russia, Gazprom Sberbank. The World Federation of Exchanges (WFE), one of the world’s leading trading associations, has suspended the primary Russian stock market due to the Russian invasion of Ukraine. The Moscow Exchange has been closed since February 25 after the invasion of Ukraine, and subsequent sanctions imposed by Western economies sent the markets into a free fall. 

Is the Moscow Stock market closed?

The Moscow stock market closed this week, while Russian shares fell sharply on other exchanges, including London and New York.   

Since trading on the Moscow Russian Stock Exchange at 10 am, Russian stocks have reportedly fallen by more than 50%. The Central Bank of Russia said that the Moscow Exchange will not open for trading in shares until Thursday. The Central Bank of Russia said it would update exchange trading next Wednesday. The Bank of Russia will not conduct so-called repurchase transactions from Saturday to Monday since the Moscow Exchange will be closed during this period, according to a message on the website of the Central Bank.    

The Moscow Stock Exchange closed for the second day in a row, and the Russian stock market faced another sharp fall on Tuesday as stocks and internationally traded funds plummeted, prompting asset manager BlackRock to post $10 trillion. Investors warn to buy funds as volatility persists. Equity markets have come close to the idea that Russia’s invasion of Ukraine could have long-term consequences for the global economy. European stocks fell at the end of the week and are at their lowest level in a year due to wide-ranging measures that have led to the disruption of Russia’s trade with one of the world’s leading suppliers of critical commodities, especially energy. 

US stocks worldwide also declined, albeit to a much lesser extent, due to more limited participation in Russia. The latest moves mark a turnaround from the initial response to the attack on Ukraine. Markets worldwide fluctuated wildly last week on fears of rising prices for oil, wheat and other commodities produced in the region due to Russia’s invasion, fueling already high inflation in the area. The value of the Russian ruble continues to hover below one cent after falling about 30% since the middle of last week.    

Putin’s invasion of Ukraine, which was met with tough financial sanctions from Western Ukraine, led Moscow this week to shut down the stock market and bar foreigners from selling shares there. Most of the profits from the short-sellers came after President Biden said the United States believed Putin was planning Putin’s invasion of Ukraine as the Moscow stock market peaked on February 16, the day before the announcement. Stocks initially fell after the start of the Russian invasion of Ukraine, followed by a rally fueled by a “buy the bust” mentality and speculation that central banks would back off from raising interest rates. Financial stocks, including HSBC and Barclays, also tumbled as tightening sanctions and rising commodity prices fueled fears of further inflation and a hit to economic growth.    

In Europe, more pronounced losses were prevalent, with more than 80% of S&P 500 stocks down. The VanEck Russia ETF and the iShares MSCI Russia ETF, the two most significant U.S.-listed funds holding only Russian stocks, fell another 10% each after Russian stocks opened on Tuesday, following losses of about 30% on Mondays. . A Russian stock market analyst took out a bottle during a live interview on a local TV station and drank the Russian stock market to death.   

The stock and bond market is the leading platform for trading in Russian shares and government, municipal, and corporate bonds. The Moscow Exchange lists shares of many of the largest Russian companies, including Gazprom, Sberbank, Rosneft, Lukoil and VTB. 

Leave a Reply