On the seventh day of the war with Ukraine, Russia kept its stock exchange closed on Wednesday (2).
It’s the third day in a row that MOEX is not working. The exchange site in Moscow remains offline. While Russia’s central bank keeps the stock exchange suspended, it said it will allow a limited set of operations for the first time this week.
The Russian Central Bank also raised on Monday (28) The benchmark interest rate from 9.5% to 20%, it ordered export-led companies to sell 80% of their foreign currency and banned foreigners from selling Russian bonds this week in an emergency measure to combat the risks of further depreciation of the ruble.
However, the currency continued to slide, hitting an all-time low of 110 per dollar on Wednesday, trading at 108.7 on the interbank market.
In the stock market, even with the closure of the Russian Stock Exchange, shares of Gazprom, the country’s main oil company, continued to fall in London, in a range above 34%, after Shell said on Monday (28) that it intends to exit. joint ventures with Russia.
Exchange-traded funds also took a hit yesterday: Paris-listed Lyxor MSCI Russia UCITS, which tracks the MSCI Russia index, fell 33% after losing half its value in the previous session – currently up 6.62%. The largest US-listed ETF that tracks Russian stocks, the VanEck Russia ETF, is down 12% in pre-market trading, after losing 30% the day before (currently up 1.45%).
After announcing its exit from the European market, Sberbank sees its shares reduced to cents on the London Stock Exchange.
The The fall of the largest bank shares in Russiaof which the Bank of Russia is the main shareholder, exceeded 80%.
Since the outbreak of war with Ukraine last week, the West has imposed sanctions on the Russian financial system, and Sberbank has suffered the most. In the February 28 trading session, it lost 74.00% and the next day it lost another 80.95%. In early February, the stock was priced at $13.40.
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