The Russian stock market resumed limited trading Thursday under heavy restrictions almost one month after prices plunged and the market was shut down following Moscow’s invasion of Ukraine.
The Russian ruble extended its recovery to hover close to 96 against the United States dollar, with the majority of stocks rising in volatile trade.
Trading of a limited number of stocks including energy giants Gazprom and Rosneft took place under curbs that are meant to prevent a repeat of the massive selloff that took place Feb. 24 in anticipation of Western economic sanctions.
The Russian currency sank to a record low and the central bank ordered the suspension of most trade after the West imposed unprecedented sanctions for what Russia calls "a special military operation" in Ukraine.
At 0748 GMT, the rouble firmed 2% to 95.61 to the dollar, extending overnight gains driven by President Vladimir Putin's statement Russia would start selling its gas to "unfriendly" countries in roubles.
Against the euro, the rouble was 3% higher at 105, away from an all-time low of 132.4 it hit in Moscow trading earlier in March, but far from levels of around 90 seen before Russia sent thousands of troops into Ukraine.
On the stock market, volatility soared as the Moscow Exchange partly resumed trade for the first time since late February. A ban on trade with foreigners and a ban on short-selling remain in place.
"Large bids to buy Russian shares have been seen since the market opening," BCS Brokerage said in a note. "The overall sentiment is supported by the confidence that the finance ministry will buy stocks."
The government said on March 1 it would channel up to 1 trillion roubles ($11.24 billion) from its rainy-day National Wealth Fund on buying Russian stocks roiled by a massive sell-off last month.
The benchmark MOEX stock index climbed 9% on the day to 2,695.8, while trading of its dollar-denominated peer RTS remained suspended.
The trading apps of major brokerages with leading banks, including Sberbank, VTB and Alfa, reported problems with processing clients' orders following the increased interest in Russian stocks.
With most of the European airspace closed to Russian planes, flagship carrier Aeroflot plunged around 20% at one point before cutting losses to 9%.
Shares in Russia's second-largest lender VTB, which is subject to western sanctions, were down 1.5% on the day.
But other stocks climbed, with some of them, such as gas producer Novatek rising nearly 25% on the day.
As Brent crude oil, a global benchmark for Russia's main export, hovered near $121 per barrel, shares in gas giant Gazprom jumped around 18%, while oil majors Rosneft and Lukoil rose by more than 20% and 6%, respectively.
Shares in mining giant Nornickel also gained 16%.
Major lender Sberbank rose 19% on the day before paring some gains.
Russia resumed trading of OFZ treasury bonds on Monday with the central bank helping to stabilize papers with interventions, the amount of which it has not yet disclosed.
Yields of benchmark 10-year OFZ bonds, which move inversely to their prices, stood at 13.8% on Thursday after hitting an all-time high of 19.74% on Monday.