Morning Note /
Russia

Alfa Morning Bulletin: 24 March 2022

  • Russian equity market reopens for limited trading

  • Russian equity market opens with strength, all focus on Brussels

  • President Putin requires EU to make payments for natural gas in rubles – Mixed

Alfa
24 March 2022
Published by

Russian equity market reopens for limited trading: The Russian stock market reopens this morning for limited trading of local shares between 09.50 and 14.00. Short selling will be prohibited, and trading will be limited to 33 stocks – (AFKS, AFLT, ALRS, CBOM, CHMF, DSKY, ENPG, FEES, GAZP, GMKN, HYDR, IRAO, LKOH, MAGN, MGNT, MOEX, MTSS, NLMK, NVTK, PHOR, PIKK, PLZL, ROSN, RTKM, RUAL, SBER, SBERP, SNGS, SNGSP, TATN, TATNP, TRNFP, VTBR). Non-residents continue to be banned from trading. Separately, Severstal seems have missed a bond coupon payment of $12.6 mn after Citi refused to process the transaction without the express approval of the US Treasury. Russia announced yesterday that energy payments from unfriendly countries will have to be made in rubles. The ruble strengthened on that – gaining 6% to 97.37/USD and 6% to 108.01/EUR. Oil prices surged higher on Wednesday (Brent +5.3% @ 121.60) on reports that the EU might join the US in blocking energy imports from Russia.

Russian equity market opens with strength, all focus on Brussels: US stocks declined on Wednesday as Treasuries staged a small recovery from unprecedented losses ahead of tighter monetary policy to curb inflation. Asian shares have retreated this morning, while the sell-off in US Treasuries paused (10UST @ 1.23%) as investors and traders weighed the latest developments in Ukraine and more hawkish comments from US Federal Reserve officials. The Russian market has reopened with strength this morning and the ruble is firm, holding on to recent gains. All focus today is on Brussels, where the US President Joe Biden has arrived for a series of summit meetings on the situation in Ukraine that will include NATO, the G7 and the European Council. A new package of Russia related sanctions is expected to be announced to include political figures and oligarchs, while separately the EU may unveil curbs on Russian energy purchases. The latter is causing elevated oil prices to climb higher this morning (Brent +0.3% @ 121.90).

KEY NEWS

President Putin requires EU to make payments for natural gas in rubles – MIXED

Inflation accelerated to 5.4% MTD as of 18 March – NEGATIVE