The Central Bank of Russia this morning indicated that partial trading of securities is finally set to resume on the Moscow Exchange. The exchange has been closed since February 25, when it closed due to markets crashing following Russia’s invasion of Ukraine.
Trading is set to resume for just 33 equities listed on the exchange, all of whom are included within the Moscow Exchange Russia Index. The index, which is tracked internationally by the RTS Index (MOEX: RTSI), is comprised of 50 equities traded on the Moscow Exchange. The index itself last traded at US$936.94 on February 25, after having fallen from recent highs of $1,524.51 see on February 16 in the lead up to the invasion.
Notably, a ban on short selling is to be in place, as the Bank presumably looks to limit the PR nightmare that reopening the market may be. The derivatives market for the same 33 securities will also reopen, which trading to occur as normal within that market.
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A list of securities set to resume trading was provided by the Bank of Russia, with notable names such as Gazprom, Rosneft, Sberbank, Norilsk Nickel, and Aeroflot among the list of names. Other names, such as Petropavlovsk, Globaltrans Investment, Fix Price Group, Polymetal International, HeadHunter Group and Ozon Holdings will not resume trading. While not explicitly stated, it appears that any non-Russian based firms, or firms with major shareholders residing outside of Russia, will not be resuming trade.
Semi-relatedly, it appears that the head of the Central Bank of Russia and Former Minister of Economic Development, Elvira Nabiullina, isn’t exactly satisfied with her current role. She reportedly attempted to quit the job before being renominated for the role just five days ago.
The RTS Index last closed at $936.94 on the MoEx.
Information for this briefing was found via The Central Bank of Russia and Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
