Russia stocks rally as market reopens after month-long closure

Energy and metals firms led a jump in Russian stocks on Thursday as trading resumed after almost a month's suspension

Energy and metals firms led a jump in Russian stocks on Thursday as trading resumed after almost a month’s suspension, reflecting soaring global prices for oil, gas and other commodities on fears the Ukraine crisis will threaten supply.

The market was also underpinned by a government commitment to support stocks, leading a senior U.S. official to dismiss the limited resumption of trading as a “a charade: a Potemkin market opening.”

Stocks had not traded on Moscow’s bourse since Feb. 25, the day after President Vladimir Putin sent troops into neighbouring Ukraine, prompting Western sanctions aimed at isolating Russia economically and then Russian countermeasures.

The reaction has cut off Russian financial markets from global networks and sent the rouble currency tumbling. Stocks had also plunged immediately after Moscow launched what it calls “a special military operation” to disarm and “denazify” its southern neighbour.

Restrictions on trade with foreigners and a ban on short selling remained in place on Thursday as the Moscow Exchange cautiously resumed equities trading. On Friday, more securities, including corporate bonds and Eurobonds will be traded, the central bank said.

“We will do everything possible to open all segments of the stock market soon,” Boris Blokhin, head of Moscow Exchange’s stock market department, said.

The short session saw energy firms make stellar gains, with gas producer Novatek, oil majors Rosneft and Lukoil and gas giant Gazprom up 12%-18.5 per cent.

Brent crude oil, a global benchmark for Russia’s main export, was trading near $120.6 per barrel on Thursday, having jumped more than 20% from a month ago as worries about supply disruptions from the Ukraine crisis drive up prices.