In an obvious ripple effect of the ongoing
Russia-Ukraine war, trading volumes in major markets of Moscow Exchange,
Russia’s largest exchange group, collapsed by significant numbers.
This is according to figures contained in the latest monthly
trading volume released by the
exchange on Thursday.
While the markets grew by 5.2% from RUB 74.3
trillion in May 2021 to RUB 78.2 trillion last month, major volumes
slumped.
The exchange’s money and foreign exchange (forex) spot
markets surged 61.9% and 22.4%, respectively, led the overall market growth recorded
in May.
Equity & Bond
According to the exchange, the equity and bond
market sank -240% month-on-month (minus overnight bonds). Total trading
volumes collapsed to RUB 995.4 billion from RUB 3,380.7 billion recorded in the
same month last year.
Additionally, the exchange disclosed that trading volume
in shares, depository receipts and investment fund units sank -72% from
RUB 2,162.3 billion in May 2021 to RUB 596.9 billion, which was generated last month.
Moreover, the average daily trading volume (ADTV) was not
spared. It plummeted -69%, from RUB 108.1 billion to RUB 33.2 billion.
Further, the trading volume in corporate, regional and
sovereign bonds plunged from RUB 1,218.4 billion in May last year to RUB
398.5 billion last month. It was a -67% decline.
Again, ADTV was not spared in this category.
It nosedived -64%. Volumes dropped to RUB 22.1 billion from RUB 60.9 billion recorded
in May 2021.
Despite the falls, Moscow Exchange said 24 new
bond issues with a combined value of RUB 278.5 billion were placed in May
2022.
However, overnight bonds account for RUB 196.0
billion of this value.
Derivative & FX
Moscow Exchange’s derivatives market collapsed
by almost half (-46%), falling from RUB 10.4 trillion in May 2021 to RUB 5.6
trillion last month.
What’s more, ADTV in this market sank to almost the same
measure of -40%, declining to RUB 309.8 billion last month from RUB 518.4
billion recorded in May 2021.
For another thing, the FX market saw major declines. Its
trading volume plunged -38% to RUB 16.1 trillion from RUB 26.0 trillion.
Of this volume, while spot trades accounted for
RUB 7.7 trillion, swap trades and forwards brought in RUB 8.4 trillion.
Just like in other markets, ADTV in
this market plummeted -31% where volumes sank from RUB 1,302.2 billion to RUB 892.3
billion.
In April, the exchange’s trading volumes reached RUB 22
trillion as opposed to RUB 34.2
trillion seen in April 2021.
Money, FX Spot Markets Rise
However, unlike other markets, Moscow Exchange’s
money market grew 61.9% from RUB 34.2 trillion in May 2021 to RUB 55.4
trillion last month.
Also, ADTV in this market climbed from RUB
1,709.1 billion to RUB 3,075.0 billion.
In addition, the FX spot market saw a 22.4% increase in May 2022, the exchange said in the published metrics.
Further, the repurchase agreement (repo) market recorded growth. Moscow Exchange’s central clearing counterparty-cleared repo
segment added 34.5% last month, reaching RUB 26.7 trillion.
This growth includes the general collateral
certificates repo segment which topped 83.8% to hit RUB 10.6 trillion.
Additionally, the precious metals market felt the heat.
Spot and swap trades in this category of the market collapsed -80% to RUB 4.1
billion from RUB 21.2 billion in May 2021.
Out of the recorded RUB 4.1 billion, total
trades in gold came in at RUB 3.8 billion (1.0 t) and RUB 0.2 billion (4.6 t) for
silver.
A Possible Build Up?
In March, the Central Bank of Russia suspended
stock trading on Moscow Exchange for
several weeks with certain exceptions.
Also in March, the country’s apex monetary
authority issued a new
order suspending banks from
selling forex until September 9.
The Federation of European Securities Exchanges
(FESE) in the same month excluded Moscow Exchange from its association after
condemning the Russia-led invasion of Ukraine.
In the week after Russia invaded Ukraine, the
central bank shut down Moscow Exchange completely throughout the week, the
longest closure of the stock exchange since 1998, according to Bloomberg.
“It’s really the end of the Russian financial
market we are used to,” Leonardo Pellandini, a strategist at Bank Julius Baer,
said at the time.
“It just seems like it is becoming an
uninvestable market, at least for foreigners. There are too many
uncertainties.”
In an obvious ripple effect of the ongoing
Russia-Ukraine war, trading volumes in major markets of Moscow Exchange,
Russia’s largest exchange group, collapsed by significant numbers.
This is according to figures contained in the latest monthly
trading volume released by the
exchange on Thursday.
While the markets grew by 5.2% from RUB 74.3
trillion in May 2021 to RUB 78.2 trillion last month, major volumes
slumped.
The exchange’s money and foreign exchange (forex) spot
markets surged 61.9% and 22.4%, respectively, led the overall market growth recorded
in May.
Equity & Bond
According to the exchange, the equity and bond
market sank -240% month-on-month (minus overnight bonds). Total trading
volumes collapsed to RUB 995.4 billion from RUB 3,380.7 billion recorded in the
same month last year.
Additionally, the exchange disclosed that trading volume
in shares, depository receipts and investment fund units sank -72% from
RUB 2,162.3 billion in May 2021 to RUB 596.9 billion, which was generated last month.
Moreover, the average daily trading volume (ADTV) was not
spared. It plummeted -69%, from RUB 108.1 billion to RUB 33.2 billion.
Further, the trading volume in corporate, regional and
sovereign bonds plunged from RUB 1,218.4 billion in May last year to RUB
398.5 billion last month. It was a -67% decline.
Again, ADTV was not spared in this category.
It nosedived -64%. Volumes dropped to RUB 22.1 billion from RUB 60.9 billion recorded
in May 2021.
Despite the falls, Moscow Exchange said 24 new
bond issues with a combined value of RUB 278.5 billion were placed in May
2022.
However, overnight bonds account for RUB 196.0
billion of this value.
Derivative & FX
Moscow Exchange’s derivatives market collapsed
by almost half (-46%), falling from RUB 10.4 trillion in May 2021 to RUB 5.6
trillion last month.
What’s more, ADTV in this market sank to almost the same
measure of -40%, declining to RUB 309.8 billion last month from RUB 518.4
billion recorded in May 2021.
For another thing, the FX market saw major declines. Its
trading volume plunged -38% to RUB 16.1 trillion from RUB 26.0 trillion.
Of this volume, while spot trades accounted for
RUB 7.7 trillion, swap trades and forwards brought in RUB 8.4 trillion.
Just like in other markets, ADTV in
this market plummeted -31% where volumes sank from RUB 1,302.2 billion to RUB 892.3
billion.
In April, the exchange’s trading volumes reached RUB 22
trillion as opposed to RUB 34.2
trillion seen in April 2021.
Money, FX Spot Markets Rise
However, unlike other markets, Moscow Exchange’s
money market grew 61.9% from RUB 34.2 trillion in May 2021 to RUB 55.4
trillion last month.
Also, ADTV in this market climbed from RUB
1,709.1 billion to RUB 3,075.0 billion.
In addition, the FX spot market saw a 22.4% increase in May 2022, the exchange said in the published metrics.
Further, the repurchase agreement (repo) market recorded growth. Moscow Exchange’s central clearing counterparty-cleared repo
segment added 34.5% last month, reaching RUB 26.7 trillion.
This growth includes the general collateral
certificates repo segment which topped 83.8% to hit RUB 10.6 trillion.
Additionally, the precious metals market felt the heat.
Spot and swap trades in this category of the market collapsed -80% to RUB 4.1
billion from RUB 21.2 billion in May 2021.
Out of the recorded RUB 4.1 billion, total
trades in gold came in at RUB 3.8 billion (1.0 t) and RUB 0.2 billion (4.6 t) for
silver.
A Possible Build Up?
In March, the Central Bank of Russia suspended
stock trading on Moscow Exchange for
several weeks with certain exceptions.
Also in March, the country’s apex monetary
authority issued a new
order suspending banks from
selling forex until September 9.
The Federation of European Securities Exchanges
(FESE) in the same month excluded Moscow Exchange from its association after
condemning the Russia-led invasion of Ukraine.
In the week after Russia invaded Ukraine, the
central bank shut down Moscow Exchange completely throughout the week, the
longest closure of the stock exchange since 1998, according to Bloomberg.
“It’s really the end of the Russian financial
market we are used to,” Leonardo Pellandini, a strategist at Bank Julius Baer,
said at the time.
“It just seems like it is becoming an
uninvestable market, at least for foreigners. There are too many
uncertainties.”
