I saw via Hacker News that the MOEX (Moscow Exchange) server doesn’t seem to be working. The exchange has been closed since Fri Feb 25th, but it’s still odd that the server name cannot resolve. One poster asserted that it is under a DDOS (Denial Of Service) attack from the West. Another said that it was co-ordinated by the “IT Army of Ukraine.”
It’s not something that anyone could actually know, of course. Well, not unless you’re actually an attacker. Someone also reported that a lot of Russian websites are under attack, especially news sites.
Other people posted that their broker stated that MOEX stocks is not available for trading. Russian stocks listed in US and UK have been suspended from trading.
It underlines the inherent dangers of investing in foreign stocks from “dubious” countries. The list of countries that aren’t at least a partial crock to invest in is quite a small one.
When I read that news I of course thought my portfolio was going to be crucified. JRS (JPMorgan Russian Securities) is down 25% to 369p. Those shares are now up only 10% since I bought them. They had doubled at one point. Ouch.
Some good news is that my FXPO shares rose 9% today. How long that lasts is an open question, naturally. The real winner in my portfolio today is BA. (Bae Systems), up 11%. European defence stocks surged on the announcement that Germany will increase its military spending due to Russia’s invasion of Ukraine. The price increase might be a little overdone. BA. has a Stockopedia StockRank of 96, and is in the Screen Of Screens. It’s what attracted me to the shares in the first place.
Shares taking a hammering today are POLY (Polymetal), down 47% (crikey!). Not sure what the specific problem is there. On the 24th Feb it said that its mines were operating normally amid Ukraine crisis.
EVR (Evraz) is down 27%. It’s a miner with operation in Russia. so the fall figures.
RAV (Raven Property) is down 27%. It owns warehouse complexes in Russia, which explains the price decline.
There’s a whole bunch of other stuff that isn’t doing too well, including airlines and holiday companies.
It seems that losses are concentrated in just a few areas. I think most investors would have avoided the troublesome sectors anyway, so I suspect that many are doing much better than the index today.
Someone’s going to make a lot of money investing in Russia. Over the long term, Russia seems one of those places to avoid.
Alas, foreign stocks are mostly a nightmare, although there will of course be exceptions. The Anglo-Dutch ones will be perfectly fine, for example.
Anyway, that’s enough doom and gloom for now. I’m off for a nap.
Stay safe out there. I hope you are all happy and well.
A Tweet from yesterday explains what’s happening with POLY. POG and EVRZ:
Sky News reported that the Russian Government has declared that it will seize the assets of international companies (US, UK and European) operating in Russia. This is not good for UK listed miners with assets in Russia