Russian stocks climb to pre-war high, rouble eases to two-week low

Russian stocks rose on Tuesday to their highest since before Russia invaded Ukraine in February 2022, boosted by market expectations that borrowing costs will be eased later this year, while the rouble dropped slightly to a two-week low. By 1215 GMT, the dollar-denominated RTS index was unchanged at 1,162.6 points.

Russian stocks rose on Tuesday to their highest since before Russia invaded Ukraine in February 2022, boosted by market expectations that borrowing costs will be eased later this year, while the rouble dropped slightly to a two-week low.

By 1215 GMT, the dollar-denominated RTS index was unchanged at 1,162.6 points. The rouble-based MOEX Russian index gained 0.2% to 3,422.3 points, hitting its strongest point since Feb. 21, 2022. One reason for stock market strength could be central bank Governor Elvira Nabiullina's comments that interest rates may be lowered from 16% in the second half of this year, said Sinara Investment Bank.

"Loans have become more expensive, but the choice now is this: either more expensive loans or higher inflation," Nabiullina said in the State Duma, Russia's lower house of parliament. "As inflation slows, we will move to lower the key rate." The bank has held its main interest rate at 16% at its two meetings so far this year. It next convenes on rates on April 26.

"On the whole, the market continues to grow on the enthusiasm of retail investors... who, in our view, should pay more attention to fundamental factors," Sinara analysts said in a note. High oil prices are also helping Russian stocks. Brent crude oil, a global benchmark for Russia's main export, rose 0.2% to $90.54 a barrel.

The rouble has traded in a relatively narrow band for the last month or so but touched its weakest point since March 26 during the session. It was last 0.1% lower against the dollar at 92.75. Against the euro, the rouble fell 0.2% to 100.79 and was 0.2% weaker at 12.80 against the yuan .

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)