Ukraine war: Russian stocks recover as trading resumes after month-long hiatus
- Government has said it will tap wealth fund to support stocks as rouble extends gains, after Putin said Russia would start selling gas to ‘unfriendly’ countries
- The Moscow Stock Exchange suspended trading hours after Russia invaded Ukraine on February 24
The Russian rouble extended its recovery on Thursday to hover close to 96 against the dollar, and the stock market rose in volatile trade after a month-long hiatus, helped by a ban on short selling and other support measures.
Russian markets are gradually reopening after the rouble sank to a record low and the central bank ordered the suspension of most trade after the West imposed unprecedented sanctions for what Russia calls “a special military operation” in Ukraine.
By 12.08pm local time, the rouble had firmed 1.6 per cent to 95.16 to the dollar, extending overnight gains driven by President Vladimir Putin’s statement Russia would start selling its gas to “unfriendly” countries in roubles.
Against the euro, the rouble was 2.2 per cent higher at 105.66, away from an all-time low of 132.4 it hit in Moscow trading earlier in March, but far from levels of around 90 seen before Russia sent thousands of troops into Ukraine on February 24.
On the stock market, volatility soared as the Moscow Exchange partly resumed trade for the first time since late February. A ban on trade with foreigners and a ban on short selling remain in place, artificially boosting equities.
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“Large bids to buy Russian shares have been seen since the market opening,” BCS Brokerage said in a note. “The overall sentiment is supported by the confidence that the finance ministry will buy stocks.”
The finance ministry did not immediately respond to a request for comment.