16:01 March 29, 2022
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In all the marasmus and misery surrounding the occupation of Ukraine and the war, I was fascinated by one unconventional thing in our field. The most attractive thing is that this situation occurred for the first time, nothing like this has ever happened before.
What is it about? In response to the invasion of Ukraine and subsequent sanctions from the vast majority of the rest of the world, the Russians closed the Moscow Stock Exchange. They wanted to cover her marked decline; so that it would not be visible from the outside how huge a hit they received. So there was nowhere to buy and sell Russian shares (except for a few titles, which are also listed on foreign stock exchanges).
But even this didn’t work out for the Russians. The world could see the descent so well.
ETFs are to blame. There are those who specialize directly in Russia and the shares of local companies. And they are mostly traded outside Russia – thus opening up the Russian stock market to Western European and American investors.
And these ETFs, of course, had Russian shares bought at the time the Moscow Stock Exchange closed. And because they are traded in the West, they acted as a beautiful indicator of the state of Russian stocks. They fully showed how much the local market had collapsed. Example: A Russian-focused ETF named iShares MSCI Russia ADR / GDR UCITS The ETF USD traded on the Swiss stock market ended at $ 24.5, up from $ 120 before the invasion. So a drop of 80 percent.
Source: Fondee
Disclaimer: This article is for information purposes only and does not serve as an investment recommendation under Act No. 256/2004 Coll. on capital market business. In preparing this article, the author relied on publicly available sources. Roklen Holding as and Roklen360 as are not responsible for any errors in the text or data.
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