Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Russian rouble rallies; Gazprom shares plummet after it skips dividend

Economy Jun 30, 2022 10:32AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A picture illustration shows Russian rouble banknotes of various denominations on a table in Warsaw, Poland, January 22, 2016. REUTERS/Kacper Pempel

MOSCOW (Reuters) - The Russian rouble rallied on Thursday, heading towards its strongest levels since 2015 as it retained support from high commodity prices, while shares in Gazprom (MCX:GAZP) plummeted after the gas giant said it would not pay dividends.

Gazprom shares fell 29% to 211 roubles ($3.91) by 1411 GMT after the company said its shareholders had decided against distributing dividends on the 2021 results.

The decision put some pressure on the rouble as investors usually convert dividend payments they receive into foreign currency and other assets.

"The absence of dividends will negatively affect the sentiment of the stock market participants. The paper formed a third of the portfolios of Russian private investors," VTB Capital analysts said.

The lack of Gazprom payout this year removed additional short-lived support for the rouble, said Dmitry Polevoy, head of investment at Locko Invest.

But the rouble firmed on the Moscow exchange, adding more than 3.5% on the day to 51.25 against the dollar and heading towards the 50 mark that it hit on Wednesday for the first time since May 2015.

Against the euro, the rouble rose 4.3% to 53.55, having climbed beyond 53 earlier this week for the first time since April 2015.

The rouble has become the world's best-performing currency this year, boosted by measures taken to shield Russia's financial system from Western sanctions imposed after Moscow sent troops into Ukraine on Feb. 24.

The measures have included restrictions on Russian households withdrawing foreign currency savings.

The strong rouble has raised concerns among officials and export-focused companies, because it dents Russia's income from selling commodities and other goods abroad for dollars and euros.

On Wednesday, Finance Minister Anton Siluanov said Russia could cut state spending and channel funds for foreign currency interventions to keep a lid on the rouble's strengthening, which threatens budget revenue.

The central bank could also ease upside pressure on the rouble by cutting interest rates as inflation slows and the economy needs cheaper credit. The central bank is expected to cut the key rate to 9% from 9.5% at its next board meeting July 22, a Reuters poll showed on Thursday.

Russian stock indexes were down. The dollar-denominated RTS index fell 3.7% to 1,360.5 points, dragged lower by Gazprom. The rouble-based MOEX Russian index was 6.7% lower at 2,218.3 points.

($1 = 53.9990 roubles)

Russian rouble rallies; Gazprom shares plummet after it skips dividend
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email