Rouble firms, Russian stocks extend slide in volatile trade

[MOSCOW] The rouble strengthened in Moscow trade on Monday (Mar 28), heading back towards a near 4-week high against the dollar, while Russian stocks extended their slide lower on the third day of trading after an almost month-long suspension.

The Russian market is gradually reopening and returning to normal after a suspension caused by sweeping Western sanctions that followed the beginning of what Russia calls "a special operation" in Ukraine on Feb 24.

Russian stocks and bonds resumed trading in full on Monday, albeit for a curtailed time frame and with various restrictions, including a ban on short selling, still in place. Non-residents are barred from selling stocks and OFZ rouble bonds until Apr 1.

At 7.47 am GMT, the rouble was 2.3 per cent stronger against the dollar at 93.84, clipping 92.51 earlier in the session, a mark close to its strongest since Mar 1.

It had gained 2.5 per cent to trade at 102.39 versus the euro , having briefly touched 97.50, a 1-month high.

Offshore, the rouble was trading at around 98 to the greenback.

Equities largely lost ground, with flag carrier Aeroflot a notable exception, recovering to gain 5.9 per cent after touching its lowest since 2009 in early trade.

The rouble-based MOEX Russian index was 1.8 per cent lower at 2,440.2 points. The dollar-denominated RTS index was down 0.7 per cent to 823.8 points.

Yields on Russia's benchmark 10-year OFZ treasury bonds were at 13.61 per cent, down from last week's record high of 19.74 per cent, which is just below the central bank's key interest rate, but still at levels last seen in March 2015.

Yields move inversely to prices.

Russia has demonstrated that it can continue to service foreign currency debt in recent weeks, but that ability will be tested once more on Monday, with Russia scheduled to pay a US$102 million coupon on a Eurobond due in 2035. REUTERS