Russian Stock Market Reopens After One Month, Closes Higher on First Day... Energy Stocks Lead the Gains

Transaction Volume Falls Below Daily Average in January-February, Records Around 1.3 Trillion KRW

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kim Hyunjung] The Russian stock market, which had been closed for nearly a month following the invasion of Ukraine, closed on the first day of partial reopening on the 24th (local time) with an upward trend. The trading volume was around 1.3 trillion won, below the average daily trading volume in January and February.

Trading took place for about four hours from 9:50 a.m. to 2 p.m., resulting in the Moscow Exchange (MOEX) index closing at 2,578, up 4.7% compared to the closing price on the 25th of last month.

According to a statement released by the Moscow Exchange, individual investors accounted for about 58% of the trading volume that day, with 567,000 general traders and 121 professionals participating. The total trading volume reached 108.6 billion rubles (approximately 1.38 trillion won), which was a decrease compared to the average daily trading volume of 190 billion rubles in January and February.

Looking at individual stocks, there was a wide disparity. Aviation and financial stocks, hit hard by the war and Western sanctions, plummeted, while energy-related companies surged.

State-owned airline Aeroflot (-16.4%), power company Inter RAO (-6.9%), and state-owned bank and second-largest bank VTB (-5.5%) saw significant declines. On the other hand, oil company Tatneft (20.1%) and gas company Novatek (18.4%) rose sharply due to soaring oil prices.

MOEX had suspended stock trading after the stock prices plummeted due to the West’s ultra-strong sanctions against Russia’s military operation in Ukraine, with the last trading day on the 25th of last month.

On this day, trading resumed for 33 major stocks including state-owned banks Sberbank and VTB, and state-owned gas company Gazprom. Short selling was banned. The government appears to have restricted foreign investors’ trading ahead of the reopening to prevent an overall downward trend.

This content was produced with the assistance of AI translation services.