Today, Russia’s stock market reopened for a brief session, over a month after markets dropped and the exchange was shut down following the invasion of Ukraine.
As some companies somewhat recovered losses from the drop on the day of the invasion, the benchmark MOEX index rose 6.5 percent. Aeroflot, the Russian airline, defied the upward trend by losing 10.7%, which is unsurprising given that it has halted all foreign flights following the United States and European Union’s trade wars.
According to a central bank announcement, trading was authorized in 33 of the 50 businesses that make up the country’s benchmark MOEX index, including state-owned gas producer Gazprom and oil company Rosneft, despite stringent restrictions.
The last time stocks traded in Moscow was on February 25. The MOEX had dropped 33% the day before as Russian armies invaded Ukraine. Since the imposition of heavy economic sanctions by Western nations. Foreign shareholders are also unable to sell their shares, a limitation imposed by Russia in response to Western sanctions targeting its banking system and the weakened currency.
Outside of Russia, the restoration of stock trading on the Moscow Exchange has had minimal impact. Its market capitalization is a sliver of what big Western or Asian markets are worth.
Hundreds of enterprises from the United States, Europe, and Japan have left Russia.
Bank runs have occurred, as well as frantic purchases of sugar and other essentials. The value of the Russian currency has plummeted.
Under rules created to fight Western sanctions against Russia’s failing banking system and currency, foreigners are prohibited from selling shares.
