Trading in the Russian stock market has come to a standstill for the last four days. But, the condition of Russian companies in the London Stock Exchange is very bad. The shares of these companies have become penny stocks. There are also some such companies, whose market capitalization was $100 billion a few days ago. But due to the fall in the shares, their value has remained negligible. The LSE on Thursday banned trading in shares of Russian companies.
There is no trading in the shares of Russian companies since Thursday. On Wednesday, these shares were trading at a penny price. These shares were traded on the London Stock Exchange under the secondary listing. Actually, these shares were traded in GDR and ADR on the London Stock Exchange. On Wednesday, the ADR of Russia’s largest bank Sberbank fell to $ 0.05. Its price has fallen by more than 99 percent since mid-February. Its price in mid-February was $14.
Sberbank is the largest bank in Russia. Six months ago, the market capitalization of this bank was more than $ 102 billion. Now its market capitalization is less than $ 190 million. This value is based on the total price of shares listed in London. From this it can be estimated that Russia had to pay a heavy price for the attack on Ukraine.
The price of GDR of Russia’s giant oil company Rosneft has fallen by about 90 percent in the last two weeks. Now its price has come down below 1 dollar. There was no trading in its GDR on Thursday. On Wednesday, the price of its GDR was $ 0.60. On January 1 this year, its price was more than $ 8. From this the beating of this stock can be gauged.
In the last two weeks, the same is the case with the GDR of Russia’s second largest oil company, LookOil. During this period, its prices have fallen by 99.7 percent. On Wednesday, its price fell to 25 cents on the London Stock Exchange. Similarly, the GDRs of Gazprom and Novatek have declined significantly. Their prices have fallen 99.8 percent since mid-February.
The London Stock Exchange decided to ban trading in the shares of 27 Russian-linked companies. He took this decision on Thursday. It took this step after MSCI’s decision to exclude shares of Russian companies from its indices. Before the market opened on Thursday, the LSE said that it is suspending trading in the shares of two registered Russian companies with immediate effect. These include such giants as Sberbank, Gazprom, LookOil and Polyus.
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