On March 24, trading of shares on the Moscow Stock Exchange resumed after almost a month’s hiatus. Since February 28, they have not been held by the decision of the Central Bank. This happened against the background of the biggest crash of the Russian stock market. After the start of the military operation in Ukraine on February 24, the Moscow Stock Exchange index was losing 45.4%.
Bargain carried out in abbreviated form: from 9.50 to 14.00 Moscow time. Shares of 33 Russian companies included in the Moscow Stock Exchange index participated in these.
According to the results of the first day, it increased by 4.43% to 2579.99 points, the RTS dollar index decreased by 9.11% to 851.62 points.
PhosAgro (+26.68%), Tatneft (+19.26%), NOVATEK (+18.43), FGC UES (+18.29), « Surgutneftegaz (+17.68%), Rosneft (+16.97%) prefer. Albert Koroev, head of the specialist department of BCS Mir Investments, said that exporters are expected to be on this list. Only FGC UES was a surprise, he added.
Aeroflot (16.06%) was the leader in terms of decline, which is also acknowledged by experts. The list of foreigners also included companies such as Transneft (-6.02%), MTS (-5.89%), Detsky Mir Group (-5.64%), VTB (-5.62%).
The total volume of transactions in stocks amounted to 108.6 billion rubles. domain Moscow Stock Exchange. The share of individuals is 58.2%. At the same time, Koroev said that the presence of a large buyer in the market is felt today.
“Investor demand was not very high. However, demand from institutional investors or the Central Bank increased. This was followed by Depth of Market, where offers were made for the purchase of securities worth hundreds of millions of rubles. For nearly all securities, demand exceeded supply. Leaders in transaction volumes included Sberbank, Gazprom, Lukoil, Rosneft and Norilsk Nickel. But compared to trading volumes in mid-February 2022, it is several times lower today.”
Even the not so high demand caused some slump. Against the background of the resumption of trade dead malfunctions in the operation of online applications that provide banking and brokerage services (including VTB and Tinkoff Bank).
Why did the papers of Russian companies grow and what will happen next?
Kirill Komarov, head of investment analytics at Tinkoff Investments, said the opening day of the stock trading brought “an unexpectedly pleasant surprise for investors who missed the trade.” According to him, the real success is the restoration of growth in most current securities after the panic selling in February. This added optimism and confidence to Russian investors.
“We expect the positive dynamics of the market to continue in the coming week. At the same time, volatility will also decrease net.
Koroev said the trade results were indeed higher than “many optimistic expectations”. In the first minutes, the Moscow Stock Exchange index went positive, after which growth accelerated to 10% (close – 4.4%). Although many market participants and experts assume that repurchase of securities and a positive exit may follow after the market drop. At the same time, he noted that certain restrictions are in effect today: the ban on short selling and restrictions on capital movement, and the actions of Russian assets and non-residents. This stabilized the market.
In fact, after a crash in the stock market and a long hiatus in trading, there has now been a recovery, added the founder of the “Practical Investment School” Fyodor Sidorov, a private investor. According to him, newspapers now “have nowhere to fall” and there is no objective reason for this yet. Sanction pressure has so far exhausted itself. The measures taken by the Central Bank and the Ministry of Finance helped stabilize the situation. Now, according to him, the indices and securities of Russian companies will gradually recover, but “they will not return to record highs for a long time in the autumn of 2021.” The current agenda will put pressure on the Russian market: and this applies not only to the development of the military operation in Ukraine, but also to other factors, in particular the policy of the US Federal Reserve.
Nikolay Vavilov, an expert in Total Research’s strategic research division, says this kind of growth won’t last long. According to him, this is affected by the ban on short positions, as well as the sale of shares by non-residents. The situation may change when they are cancelled. “Secondly, this is de facto enthusiasm from the first trading day of a month,” he said. According to the expert, there will be no such sharp positive dynamics tomorrow.
Source: Gazeta
Barbara Dickson is a seasoned writer for “Social Bites”. She keeps readers informed on the latest news and trends, providing in-depth coverage and analysis on a variety of topics.