When you suddenly found yourself at a live stock market wake…
In Russia, the stock market was closed (who does not know, shares of Russian enterprises are traded there, and it actually serves as an indicator of their value at the current moment). They simply stopped all trading by order of the Central Bank until March 5. Nothing more can be said about his condition, but still add a few details to complete the picture.
On March 1, Prime Minister Mikhail Mishustin instructed the Finance Ministry to allocate 1 trillion rubles from the National Welfare Fund (NWF) in 2022 to purchase shares of Russian issuers on terms determined by the Finance Ministry. Apparently, according to the government of the Russian Federation, this will somehow help calm the panic in the securities market.
This means that the shares traded on the stock exchange will actually be bought by the state, but in reality, taxpayers, that is, Russians, will pay for them. Plus, if the state buys shares at bargain prices, it can keep them, that is, nationalize many companies. It is not a fact that this will happen, but such a scenario cannot be ruled out either.
The collapse of the Russian stock market started on February 21, when Vladimir Putin signed a decree recognizing the so-called LNR and DNR. Then the Moscow Exchange index fell by 10.5% in a day, the RTS – by 13.2%. These are the two main exchanges in the country. On February 24, the day the “military operation” began, the Russian stock market experienced a catastrophe: the collapse of the Moscow Exchange and RTS indices for the day amounted to 33.3% and 38.3%, respectively. There has never been such a collapse in history.
Then, trading in shares on the main exchanges almost stopped, and since March 1, they have been held only on the currency and money markets.
“The stock market of the Russian Federation fell by 40%,” US President Joe Biden made such a statement on Tuesday evening before the House of Representatives and the Senate of the US Congress. According to experts, this figure is close to the real one. To make it clear: in a few days, all significant, large, and even medium-sized enterprises in Russia have fallen in price by almost half. That is, the entire Russian economy “shrank” in price by 40% in less than a week.
Reuters quotes the words of a top manager of the index agency MSCI: “The Russian stock market is unsuitable for investment after new tough sanctions and restrictions on trading by the Central Bank.” In other words, all foreigners (companies and individuals) are advised to run away from Russian stocks.
Experts believe that if we theoretically assume that from now on the Russian stock market will begin to recover (and this, as you understand, in reality will not be for a long time), then its recovery (return to the indicators of mid-February 2022) will take two to three years .
In short, the stock market in Russia is in its death throes. And such an assessment even somehow broke through on Russian television!
On March 2, on the RBC TV channel, in the next issue of the Index program, Alexander Butmanov, an economist, founder of the Soyuzniki investment club and an expert in stock strategies, was invited as an expert. After greeting the presenter Elina Tikhonova, Butmanov said that he would not say “Good afternoon.”
The host asked if he was going to stay in the profession. He replied that “he is going to work as Santa Claus, like 25 years ago.” He then held up a bottle of sparkling water and announced that he would toast to the “death” of the stock market. The presenter said that “she would not comment on this flash mob in any way.”
Alexander Butmanov: “Jokes aside, let me do it quickly. I send my regards to Sergei Usichenko, who drank 13 years ago to the death of the stock market. Today I drink soda. Dear stock market, you were close to us, interesting. Rest in peace, dear friend.”
Few people know about which Sergey Usichenko, or rather, what act Butmanov is talking about. Here’s a video from 2008 that explains it all…
Social networks also commented on the act of Alexander Butmanov:
Earlier, Rosbalt Like reported that, according to social network users, “YouTube has two or three days left.”
Source: Rosbalt
Tristin is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
