MOEX Russia Index

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Important events

Jun 282022

Russia’s historic default

The war in Ukraine shows no signs of abating and sanctions are starting to take a toll on the Russian economy, leading to a historic debt default.

  • Russia has officially defaulted on its debt after missing a key deadline. The country’s good for the cash, but has been on the receiving end of some of history’s harshest sanctions since invading Ukraine and wasn’t able to find a way to get about $100m in trapped interest payments to its creditors.
  • 1918 was the last time Russia fell into direct default with its foreign creditors. The default has left investors wondering when they’ll be getting their money, but considering there’s almost zero chance of sanctions being lifted unless Russia retreats, it could be a while.
  • Russia’s hold on global energy supplies continues to cause chaos in the commodities market too, and it doesn’t look like the pressure will abate any time soon. One analyst has warned that Russia completely shutting down its gas pipelines into Europe is “not inconceivable”, which would naturally be v bad for the global supply of energy.
IGORN / Pixabay

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Mar 242022

Moscow marks its first swings of March

The Moscow stock market goes through all the emotions when it reopens after a month on Thursday.

🔍 Key points:

  • The Russian index shot up nearly 9% at market open on Thursday before coming back down to earth to close the day up 4.4% – which is still a good show considering the last trading session took the index down to six-year lows.
  • The market closed on Feb 25 for just under a month, its longest shut down in modern history, as the country tried to shield its stock market from the slew of sanctions being placed against Russia. It partially reopened on Thursday, with 33 of the 50 stocks trading once again, though short selling has been explicitly banned.
  • Given the war is still very much going on, it was something of a surprise to see such strength in prices, and analysts from True Insights speculate that investors are expecting valuations to return to pre-pandemic levels shortly. Only time will tell we suppose, so stay tuned.
Vardan Papikyan / Unsplash
Feb 252022

Moscow stocks make a dramatic downturn

Russia’s main index is seeing its largest ever losses as military attacks against Ukraine continue to escalate.

Key points:
  • The Moscow Exchange plunged 33% on Thursday in its largest ever single day retreat, wiping off nearly $200bn in stock market value in just one day, and taking prices down to their lowest level since early 2016. The index is making a decent recovery on Friday morning though, up 15% in morning trading.
  • The exchange halted trading earlier on Thursday across all markets after USD/RUB fell to almost 90 on the back of an escalation in military action in Ukraine. Trading picked back up once Russia’s central bank said it would step in to stabilize the market.
  • Biden promised “severe costs on the Russian economy” in a speech from the White House on Thursday, and (along with other global leaders) imposed sanctions against Russia’s biggest financial institutions – if the ruble falls much further, Russia’s central bank will have to consider rate hikes, which will likely further damage the market.
Jean Colet / Unsplash