Russian stocks -

Correct me if am wrong but if you buy at the current prices and it goes up to pre pandemic prices when other investors might be on 5% your would be 50.32%?

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No you are wrong. No-one pays a percentage they pay an amount.

Your yield on cost would be better, but you’ll receive the same amount per share as everyone else.

The point i cant get my head around is that black rock doubled down on polymetal why?

Are they not aware of the risks and possible delisting of these Russian stock from these major exchanges even as MSCI is looking to remove Russia from emerging market Indices

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Hey, everyone.

Sorry to jump in the discussion. We’ve created an article in our Help Centre with a list of Russian securities suspended from trading by their respective market exchanges. If there are any changes, we’ll update the article accordingly.

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How come Evraz has not been suspended?

You have made a mistake as Polymetal has not been suspended by the LSE it’s still trading as like Evraz it’s not a Russian company!!

European markets slip as London Stock Exchange blocks trading in Russian stocks LaToya Harding Thu, 3 March 2022

Previously
Russian stocks Evraz and Polymetal set to lose FTSE 100 status, LaToya Harding¡Business reporter Tue, 1 March 2022

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Poly is still avaliable on LSE why is trading suspended?

LSE removing poly from FTSE 100 has no impact, this should still be tradeable?

The LSE listing was placed in close-only by our execution intermediary, while the OTC one, will be suspended at the end of the session on Friday.

What happens to your position if you hold a suspended stock? Is it auto sold?

It’s quite an unprecedented situation. If it gets delisted and doesn’t return the money is lost, gone - this is part of the geopolitical risk of investing in other countries.

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Can we have any info from broker what is gonna happen to our open positions in Russian stocks please?

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Investing in any of these Russian companies is a massive risk. With Evraz, if their money is made in Russia is there any chance they could withhold the funds in Russia and not pay the next dividend? I held a small position in Evraz for the dividend but got out in January as it was too much risk for me.

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Here’s a Russian’s take on the situation:

It seems that my crystal ball works well: :slight_smile:

With Russian stock exchanges closed, the ADR/EDR/GDR/OTC can’t fetch the correct underlying prices.

As there isn’t liquidity, the ETFs companies are suspending the Russia ETFs, index providers are planning excluding Russian stocks and bonds (MSCI and FTSE Russell already cut the Russian equities out of their indexes).

Rating agencies Fitch, S&P Global and Moody’s downgraded Russia’s sovereign debt rating to junk.

So the Russian stocks (direct, or indirect through DR, ETFs, funds) are near or being written-off from indexes/ETFs/funds. And the foreign investors will be holding the bag, with stocks they can’t trade anywhere (no stock exchange) and even there were stock exchanges, there are no investors or few ones (distress/opportunistic strategies/investors/funds) that will squeeze the prices down to zero, to buy it the cheapest possible.

Putin had already ordered the companies, banks and brokers not to pay to foreign investors. Including frozen the assets of foreign investors and companies in Russia (with a threat to nationalize it).

It’s a rational play, as Russia need foreign currency reserves; preserving the liquidity of companies, banks and brokers on national currency (RUB); holding the money in the country (capital control), the final goal is to protect their local economy (and political regime).

Or it’s pure vengeance against the imposed sanctions.

This is a recurring strategy of Emerging Markets when they are under economical and financial stress. Not new and not the last EM country that will do it. EM are extremely risk (I include in EM also China, as several index providers also do).

EDIT: Western banks are closing RUB accounts, Russian banks won’t have access to their foreign accounts (USD, EUR, GBP) in banks outside Russia, some Russian banks are loosing the SWIFT connection, so it will be very difficult to transfer funds related to Russia.

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A quick update about the ongoing situation - the LSE listings of Petropavlovsk (POG), Evraz (EVR) and Polymetal International (POLY) were placed in close only by IBKR.

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I commend countries like ours who sanction on a moral level, but lets not pretend this is not going to hurt economically, as the assets behind Russian companies are not at risk its merely access through sanctions that is the issue, for China this wont be as big a hurdle:

Can someone tell a platform where you can still trade? Im so piss…d, chinese are stocking up bargain russian stocks and we are stuck in dead end…

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