In Russia continues to fall, the ruble, and experts advise not to buy Russian shares

In Russia continues to fall, the ruble, and experts advise not to buy Russian shares

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Today, 11:21

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The fall was caused by the US imposed sanctions.

On Monday morning, April 16, at the auction on the Moscow stock exchange continues to depreciate the Russian ruble. The US dollar rose by 14 cents to 62,19 of the ruble, the Euro by 18 cents, to 76,73 of the ruble.

This writes the “Prime”.

The reason for the fall of the ruble – the US imposed sanctions against “Putin’s friends”. Because of this, actively devalued and stocks of companiesassociated with the individuals from the sanctions list. In particular, the shares of Russian metals company RUSAL, the main owner of which is businessman Oleg Deripaska, at the opening of trading fell by 23.3% up to 16.11 ruble. Subsequently, the shares rose to 19.8 rubles. Historical minimum value of shares of “RUSAL” recorded April 9 – 15.04 ruble. On the Hong Kong stock exchange, RUSAL shares on April 16 lost in the price more than 20%, breaking another historic lows of 1.63 Hong Kong dollar per share.

Monday morning falling the entire Russian stock market. The index of the Moscow exchange decreased on 0,2% – up to 2,175 points, the RTS index was down 0.5 percent to 1105 points. The fall of the dollar indicator – RTS is due to the growth of the US currency against the ruble.

Meanwhile, economic analyst of the strategy of Russia’s John-Paul Smith, who predicted the collapse of 1998, advises to stay away from Russian stock. About it writes Bloomberg.

“Investors can become a casual victim of the actions of both parties of a new cold war,” wrote Smith, a former strategist at Deutsche Bank AG and founder of the research firm Ecstrat.

He did not rule out a short-term bounce in the ruble or the stock benchmark after the collapse of the market. At the same time the long-term Outlook “remains bleak”.

Russia’s RTS index, denominated in USD, have experienced the sharpest weekly drop in more than two years after the most stringent of today’s US sanctions that block trade in the securities of several companies. While some traders think panic selling as buying opportunities, others wonder whether the Russian assets is now in danger because of the sanctions.

According to Smith, investors were “too careless about the consequences of a” confrontation between Russia and the West, which he called the “collision of political, economic and financial systems.”

Smith, who has long taken a bearish stance against Russia became famous, warning in early 1998 that investors are too optimistic about Russian assets, while the country faces a massive financial crisis and devaluation. A few months after Russia defaulted on domestic debt of $ 40 billion, and the ruble went into free fall.

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In the new list of us sanctions – 24 businessman and official, and 14 companies belonging to them and their family. The shares of these companies on the world stock markets began to plummet along with the Russian ruble. Next week at the Ukrainian national security Council also will consider the possibility of imposing sanctions, but analysts advise not to rush – can suffer Ukraine itself.

TSN. Week

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  • USA
  • sanctions
  • stock
  • Deripaska
  • The ruble

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