MOSCOW, September 12 (RIA Novosti) – Share prices on the Russian stock market rebounded on Friday as they had previously over-reacted to the new EU sanctions against Moscow over the crisis in Ukraine, stock data proves.
"The main negative effect was already played out yesterday. Now we're rising only because some people expected something worse," Investcafe analyst Mikhail Kuzmin told the Moscow Times.
The dollar-denominated RTS index was up 0,37 percent to 1,222 points, while its ruble-based peer MICEX was 0,79 percent higher at 1,460 points at 2:09 PM Moscow time. In the previous session both indexes had fallen more than 1 percent after the EU sanctions were announced.
Despite stocks rallying, the dollar renewed its historic maximum against the ruble, which was hit by weakness across currencies of emerging market nations. The ruble was trading at 37,64 rubles per dollar at 2:00 p.m. Moscow time, after having fallen earlier to 37,73 rubles per dollar.
The European Union barred three major Russian oil companies – Rosneft, Transneft, Gazprom Neft – and three major defense companies – Oboronprom, United Aircraft Corporation and Uralvagonzavod – from seeking finance on European capital markets on Friday.
The 28-member bloc also banned the sale of dual-technology equipment to nine Russian defense companies including Kalashnikov Concern, Russia's largest producer of automatic and sniper weapons.