Russian stocks hit 3-month high, ruble nears 60 against dollar

Russian stocks hit 3-month high, ruble nears 60 against dollar
Russian stocks hit 3-month high, ruble nears 60 against dollar
  • This content was produced in Russia where the law limits coverage of Russian military operations in Ukraine

MOSCOW, Sept 2 (Reuters) – Russia’s MOEX stock index hit its highest level in more than three months on Friday, as investors bet on other companies following Gazprom’s lead in recommending dividends, while the ruble is hovering around the 60 mark against the dollar.

The board of directors of gas giant Gazprom (GAZP.MM) this week recommended paying 51.03 rubles ($0.8456) per ordinary share in dividends in the first half of 2022, pushing the company’s shares up by around 25% and supporting the Russian indices.

“Investors seem to have rejoiced and hoped that the dividend idea is alive and that other Russian companies will join Gazprom gradually driving the market higher,” said Alexander Arutyunyan, chief economist at Russ-Invest.

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As of 12:07 GMT, Russia’s ruble-based MOEX index (.IMOEX) was up 1.1% to 2,471.9 points, its highest mark since May 18.

The dollar-denominated RTS index (.IRTS) rose 0.8% to 1,290.1 ​​points, to a nearly two-month high.

“Investors may want to cash in ahead of the weekend, although we still believe iMOEX remains in an uptrend,” BCS Global Markets said in a note.

STABLE RUBLE

The ruble hovered around 60 to the dollar and euro, continuing the steady trade that has characterized recent weeks, a marked contrast to months of volatility.

The ruble weakened 0.1% against the dollar to 60.37 and fell 0.5% to trade at 60.19 against the euro.

Promsvyazbank analysts said the ruble will remain in the 60-61 range against the greenback on Friday.

Volatility has eased since hitting a record low of 121.53 to the dollar in Moscow trading in March, shortly after Russia sent tens of thousands of troops to Ukraine. It then hit a seven-year high of 50.01 to the dollar in June.

So far this year, the ruble has been the world’s best-performing currency, buoyed by emergency capital controls put in place by the central bank in a bid to stop a sell-off. This averted an economic collapse that many had predicted. Read more

However, the central bank said Russian banks had lost a total of 1.5 trillion rubles ($24.86 billion) in the first six months of 2022, revealing banking sector profits on Friday for the first time since February. . Read more

($1 = 60.3500 rubles)

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Reporting by Alexander Marrow Editing by Gareth Jones

Our standards: The Thomson Reuters Trust Principles.

. Russian stock reached their high level month ruble near against dollar

. Russian stocks hit #3month high ruble nears dollar

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