The Moscow Stock Exchange will also open for shares on Thursday. This will happen for the first time since February 25, when the floor was closed due to the Russian invasion of Ukraine and its economic and sanctioning effects.
The almost monthly closing of the stock exchange anywhere in the world is quite unique. For example, the New York Stock Exchange was closed for less than a week after the 9/11 attacks, which took place just a short distance from it.
Most of the market tomorrow expects a sharp fall in Russian stocks by up to 50 percent. But the Kremlin will be ready and his the state fund is likely to launch a massive rescue purchase of sharesSo you can eventually grow in price. The state fund will be able to use up to ten billion dollars, ie over 220 billion crowns, for these purchases.
Russian authorities also yesterday preventively ban speculation on the decline, which should also alleviate the fall in shares. Foreigners will also not be able to trade in shares, resp. their brokerage companies, as they have been banned from the beginning of the invasion. This should also dampen the fall in shares.
Another repayment of the Russian dollar debt has taken place. Lenders are still waiting for their 66 billion
Russia has kept further commitments. It paid $ 66 billion in dollar bond interest on Monday. The payment was processed by JPMorgan Chase & Co, Reuters reported. The creditors have not yet received the payment.
On the Moscow Stock Exchange, “half-hearted” trades from Monday this week. Russian government bonds began trading on Monday. As part of stabilization measures, the Russian central bank is buying these bonds to supply liquidity to the market and reduce interest rates on the Russian government’s debt. Once Russia’s financial markets have stabilized, the central bank intends to resell all the bonds it has bought in order to neutralize the impact of the purchases on the country’s monetary policy.
As a result of the war in Ukraine and related sanctions, the bonds of both the Russian government and Russian companies are under considerable pressure. The Russian government averted the risk of insolvency on its foreign currency liabilities last week, the first since 1918, just after Vladimir Ilyich Lenin and the Bolsheviks came to power and stopped paying tsarist debt.
Lukáš Kovanda: Beijing is increasingly turning away from Russia. There’s a calculus in it
China is friendly to the Ukrainian people and will never attack Ukraine. Monday’s words from the Chinese ambassador to the governor of the Lviv region were confirmed by the Chinese Foreign Ministry on Thursday. Beijing is increasingly turning away from Russia, mainly because of its trade interests.
Mask debt due last week, amounting to $ 117 million, repaid with a certain delay, which increases the parties’ uncertainty about the repayment of other liabilities in the near future, and especially in the period after May 25 this year. After May 25, the US sanctions exemption will no longer apply, which still allows international financial intermediaries to process payments related to Russian bonds. Uncertainty regarding bonds, resp. their issuer and its ability to repay, generally increases interest rates on bonds as their riskiness increases.
Some Russian stocks were traded under the so-called dual listing even after this year’s 25 February, on stock exchanges outside Russia, such as London. On the London Stock Exchange, Russian stocks there lost almost one hundred percent of their market value in the days after the invasion, so trading in them was suspended.
The cowgirl ends. Russia has avoided insolvency, for now
The London branch of Citibank already has $ 117.2 million from the Russian Ministry of Finance.
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