Russia: Stocks down 99%, indices paused, the ruble collapses, and oil soars.
Russia: Stocks down 99%, indices paused, the ruble collapses, and oil soars.
Russia's financial market found itself in total chaos after the recent attack on Ukraine. Sanctions and investors' fear pushed the best-known Russian companies to the brink of a zero price. No joke.
On the exchange, shares of Gazprom OGZD fell to a price of 0.14 USD. Remember that at the beginning of the current year, one share cost 9.32 USD, while the 2021 high was 10.94 USD. This collapse measures 99%.
Lukoil LKOD fell from 108 USD (on 26.10.2021) to 0.36 USD (yesterday), which represents a depreciation of the same 9%.
Sberbank shares SBER also fell as far as they could, more precisely by 96%, from 21 USD to 0.76 USD.
The Russian ruble, as forecast in the previous post "Russia attacks Ukraine. Financial consequences", continued its sharp depreciation against EUR and USD after previous historical levels were broken. USD/RUB devalued by about 50%, and EUR/RUB by about 45%. Both quotes recovered a little yesterday, but in the medium term the forecasts are not encouraging for RUB.
From a technical point of view, there will be good opportunities for buy trades if USD/RUB now falls to the 80 level and EUR/RUB to 90.
The only joy for Russia is that oil is appreciating aggressively. WTI today tested the high of the last 11 years and is quoted at 114 USD per barrel, while BRENT oil now costs 117 USD. These exaggeratedly high prices are favorable for the country with the largest share of oil for sale, but they will cause major inconvenience for drivers when fuel prices are adjusted to market quotations.
Russia's stock exchanges, as well as the Russian stock indices RTS and MOEX, have been closed for several days, and shares of Russian companies listed through the London Stock Exchange LSE in the UK were available for trading until yesterday inclusive, but only in "Close Only" mode, which means that we cannot place buy orders, only sell orders.
Risk warning: This article is for information and education only, reflects the situation as of its publication date and does not constitute investment advice, an offer or a recommendation to buy or sell any financial instrument. Trading leveraged instruments (Forex, CFDs) and crypto-assets carries a high risk of losing your capital. Past performance does not guarantee future results. Before investing, assess your objectives and risk tolerance and, if needed, consult a licensed adviser. Details: Disclaimer & Risk Warning.
Translated from the Romanian original with AI assistance.