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Russian stocks surged in the reopening session

(Dan Tri) – Russian stocks surged as markets partially reopened to limited trading starting today (March 24) after the longest close since the collapse of the Soviet Union.

Russian stocks surged in the reopening session - 1

The Russian stock market reopened after being closed since the war broke out in Ukraine (Image: Getty).

Transaction basis stock Moscow resumed trading in 33 Russian stocks, including big names like Gazprom and Sberbank, between 10:00 a.m. and 2:00 p.m. local time, according to an announcement from the Central Bank of Russia. However, short selling of shares will be prohibited and foreign investors will not be able to sell OFZ ruble stocks or bonds until April 1.

Russia’s MOEX index was up more than 5% around 1pm (Moscow time) after gaining more than 10% earlier.

Share of oil “giants” such as Rosneft and Lukoil both increased by more than 17% and 13% respectively. Meanwhile, shares of aluminum “big man” Rusal also increased more than 13%. Shares of the world’s largest nickel corporation Norilsk Nickel also rose more than 10%.

In the opposite direction, shares of Russian airline Aeroflot initially fell 20% but then rebounded and fell 12% in mid-session.

Russia has closed its stock exchange since February 25 when stock prices fell across the board following Russia’s invasion of Ukraine and subsequent international sanctions.

Jeroen Blokland, founder and head of research at Dutch investment firm True Insights, said that investors’ return to Russian stocks “probably based on the idea that valuations are going to become a bit more expensive.” to pre-war levels”.

“However, this cannot happen. It is difficult to acknowledge the fundamentals, but what we do know is that sanctions are going to be around for a long time,” Mr. Blokland said.

Institute Finance The International (IIF) yesterday forecast that the Russian economy will shrink 15% this year due to the war in Ukraine. In particular, the agency noted that the “self-punishment” measures of foreign companies will contribute to the decline of the Russian economy. The IIF also said that Russian domestic demand will decline rapidly, with imports falling to offset the drop in exports.

“Along with a contraction of around 3% in 2023, this will wipe out 15 years of economic growth. However, the impact on the medium and long-term outlook could be even more severe,” the agency said. know.

The IIF report also added that “brain drain” and low investment will weigh on already weakened growth potential.

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