Russian stock market reopens after 1mth

New York: Russia is reopening its stock market for limited trading nearly one month after shares plunged and the exchange was shut down following the invasion of Ukraine. Moex Russia Index of Moscow Exchange rose 108.03 points or 4.37 per cent and closed at 2,578.51 points.

Shares rose in Moscow after Russia's exchange resumed trading under heavy restrictions nearly one month after shares plunged and the exchange was shut down following the invasion of Ukraine. Limits are in place to prevent the kind of massive selloff that occurred in anticipation of crushing financial and economic sanctions from Western nations. Foreign shareholders will be unable to sell shares — a restriction Russia imposed to counter Western sanctions against its financial system and the weakening ruble. Trading was allowed in 33 of the 50 companies that are part of the country's benchmark MOEX index, including air carrier Aeroflot, state-owned gas producer Gazprom and the oil company Rosneft, according to a central bank announcement about the reopening. The index was up 8.9per cent by mid-morning Moscow time.

There will be heavy restrictions on trading Thursday as the exchange opens to prevent the kind of massive selloff that took place on February 24 in anticipation of crushing financial and economic sanctions from Western nations. The reopening of the Moscow exchange has only minimal significance for investors outside Russia and scant economic impact compared with barrage of US-led sanctions and withdrawals by foreign corporations. The average exposure by a US investor through a mutual fund or retirement account to Russia is exceedingly small, according to Ben Johnson, director of global ETF research at Morningstar.