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Airline Aeroflot leads Russian stock slide on 2nd day of trade -Breaking

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© Reuters. FILEPHOTO: In Moscow, Russia May 26, 2017, the letters MOEX can be seen at the Moscow Exchange. The background shows the Kremlin, Four Seasons Hotel, and Moscow. REUTERS/Segrei Karpukhin

(Reuters) -Russian stock markets fell on Friday, their second trading day after a near month-long suspension. Aeroflot’s losses were the most severe, having lost over 25% in two days.

After reaching a maximum of 2,761.17 point on Thursday, it was 2.9% lower at 2,506.2 by 0856 GMT.

RTS-indicated dollar fell 3.2% to 828.2 Points

Stocks had been off the Moscow bourse for over a week. This was after Russian President Vladimir Putin deployed thousands of troops to Ukraine on February 25, 2015. Western sanctions were imposed against Russia in an attempt to isolate it economically.

More securities were traded on Friday including Eurobonds and corporate bonds. However, foreigners are still prohibited from trading, as well as the ban on short-selling.

Commodity stocks were the leader of Thursday’s recovery with double-digit gains, but nearly all securities dropped ground Friday.

Aeroflot was the largest loser, dropping 13% in addition to Thursday’s loss of 16%.

Sberbank and VTB, state-owned lenders, also declined 3.5% to 7.7%.

Rosneft Oil Major was an exception. It gained 0.5% and Lukoil lost 3.5%.

ROUBLE GAINS

Reacting to the events in Ukraine has severred Russian financial markets and sent the ruble tumbling.

Friday’s currency trade in Moscow saw it fall 0.2% against dollar to 97. This reverses earlier gains.

It climbed to 94.9875 on Wednesday after Putin declared that Russia will begin selling gas in Russia in roubles to countries that are “unfriendly”.

The rouble fell to 98 against the dollar in offshore markets.

Friday’s central bank statement stated that capital flows restrictions were not a good idea after Western countries had frozen its reserves.

According to Russia’s central bank, “In reaction to the freezing part of Russia’s reserves, Russia has also placed restrictions on funds moving to friendly countries with a similar amount.”

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