Arab Today, arab today russias stocks soar after avoiding delisting
Last Updated : GMT 15:14:25
Arab Today, arab today
Arab Today, arab today

Russia's stocks soar after avoiding delisting

Arab Today, arab today

Arab Today, arab today Russia's stocks soar after avoiding delisting

The shares of Russia's two biggest banks soared
Moscow - AFP

The shares of Russia's two biggest banks soared on Monday after avoiding being dropped from a top emerging markets index as part of the West's response to the Kremlin's stance in Ukraine.
The New York-based MSCI index provider decided on Friday to keep offering the shares of Sberbank and VTB to clients as long as the two Russian state-held giants did not issue any more stock.
Sberbank shares rose more than four percent while those of VTB gained nearly three percent in late afternoon trading on Moscow's main exchange.
The broader market followed the banks' lead higher and was up nearly two percent while the ruble gained about one percent against the euro and also edged up against the dollar.
Russian investors said they now expected the other main exchanges in Europe to follow New York's lead and keep the two stocks.
"We believe that the risk of two of the heavyweight members of the MSCI Russia being excluded from the index was weighing on the broader Russian market last week, and that the news will therefore provide some relief to the market," VTB Group's investment house said in a research note.
VTB noted that it may have a conflict of interest in the matter
The MSCI Russia index is global traders' preferred way to access a balanced portfolio of paper that reflects the price of the main Moscow-issued stocks.
The ordinary and preferred shares of Sberbank make up about 12 percent of the MSCI Russia index while those of VTB are weighed at just under three percent.
MSCI was under pressure to drop the two finance houses as part of a sanctions package unleashed against Russia's financial and other sensitive sectors over the Kremlin's perceived backing of insurgents in eastern Ukraine.
The index provider said it reached its decision after "consultation with the investment community" over concerns that the two banks were now prohibited from issuing new shares on the US and European markets.
MSCI said in had decided not to raise the weight of the two stocks in its Russia index should the banks ignore the restrictions and proceed with a share issue in order to raise more capital.
"Both Sberbank and VTB Bank have officially announced that they do not intend to issue new shares in the near future," MSCI said.
Traders said that a delisting threatened to accelerate the pace at which investors' capital was fleeing Russia.
- 'Improve the mood' -
Russia's central bank said net capital outflows had reached about $75 billion (55 billion euros) in the first half of the year -- more than the entire figure for 2013.
The overhanging threat of Western sanctions has effectively frozen investment in projects and seen industrial output shrink in both May and June.
Russia's state statistics committee also reported on Monday that its initial reading of annualised growth from April to June came in at 0.8 percent -- lower than the economy minister's earlier forecast of 1.2-percent growth.
The International Monetary Fund does not expect the economy to expand by more than 0.2 percent.
The Moscow exchange climbed in value between early March and June when traders decided the West would mete out only token punishment for Russia's March seizure of Ukraine's Crimea peninsula and subsequent efforts to fight Kiev's new pro-European stand.
But it shed nearly a fifth of its value as the crisis spread to conflict in eastern Ukraine and the threat of sanctions mounted in the past two months.
Moscow's Promsvyazbank economist Oleg Shagov said the MSCI decision "should help change the mood of investors for the better".
 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today russias stocks soar after avoiding delisting Arab Today, arab today russias stocks soar after avoiding delisting

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today russias stocks soar after avoiding delisting Arab Today, arab today russias stocks soar after avoiding delisting

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Russia and Iraq restore air travel

GMT 11:40 2017 Monday ,18 September

Russia and Iraq restore air travel
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today 600,000 children may flee to Bangladesh

GMT 06:49 2017 Monday ,18 September

600,000 children may flee to Bangladesh
Arab Today, arab today Equifax executives step down

GMT 16:16 2017 Saturday ,16 September

Equifax executives step down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today New Zealand opposition looks

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks
Arab Today, arab today 5,000 'Dieselgate' deaths in Europe per year

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Renault-Nissan to launch

GMT 10:44 2017 Saturday ,16 September

Renault-Nissan to launch
Arab Today, arab today Eman Al Assy receives three offers

GMT 06:31 2017 Saturday ,16 September

Eman Al Assy receives three offers
Arab Today, arab today 'Severe' Typhoon Doksuri pounds Vietnam

GMT 15:49 2017 Friday ,15 September

'Severe' Typhoon Doksuri pounds Vietnam

GMT 11:10 2017 Friday ,15 September

Fadl Shaker retreats from surrendering himself

GMT 05:05 2017 Tuesday ,12 September

Pregnant woman's suicide roils China

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 10:25 2017 Thursday ,14 September

Greece fumbled oil spill response

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:45 2017 Sunday ,17 September

France's hurricane-hit St Martin

GMT 11:53 2017 Saturday ,16 September

Jolie effect helps Namibian tourism

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:56 2017 Friday ,15 September

Apple's grand plan in Ireland held up by a forest

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday