The Russian currency exchanges for less than 60 rubles against both the dollar and the euro
Photo: Andrey Rudakov/Bloomberg
Russia’s leading MOEX index hit its highest level in three months on Thursday, boosted by gains in oil giant Lukoil, Reuters reports. At the same time, the ruble appreciated to below 60 rubles against the dollar and the euro.
The benchmark MOEX ended the session with a growth of 1.9% to 2445.77 points. This is its highest level since at least May 20.
At the same time, the oil giant’s papers Lukoil increased in price by over 10%.
The market received support this week from the gas giant Gazpromafter the company’s board recommended paying a dividend of 51.03 rubles ($0.8484) per common share for the first half of 2022. The company’s shares, which rose about 25% on Wednesday, erased 2.3% on Thursday .
“Gazprom’s dividend payment could become a growth engine for the Russian stock market,” commented Dmitry Skryabin, portfolio manager at Alfa Capital. “Gazprom’s example may encourage dividend payments by other companies that have not paid but have the financial capacity to do so,” he commented.
Meanwhile, the dollar-denominated RTS index, which also hit a near two-month high in the previous session, rose 1.7 percent to 1,279.45 points, its best performance since July 4.
On the foreign exchange market minutes before 8:30 p.m., the ruble traded at 59.4750 rubles per dollar, up from about 60 rubles earlier in the day.
Against the euro, it also crossed the threshold of 60 rubles, reaching 59.3863 rubles.
The Russian currency spent most of August near the 60 ruble per dollar threshold. Its price has stabilized after hitting a record low of 121.53 rubles to the dollar in March, soon after the Russian invasion of Ukraine began. It later hit a seven-year high of 50.01 rubles to the dollar in June.
Since the beginning of the year, the ruble has been among the best performing currencies, supported by extraordinary capital control measures.