Bank announces suspension of stock trading in South Korea
In a surprising turn of events, Uralkali shares were suspended from trading on multiple exchanges on July 4, following a directive from the Central Bank. The suspension came a day after the stock plunged by over 17% due to a lawsuit by the Prosecutor General's Office.
The Prosecutor General's Office, in addition to demanding Uralkali shares, also sought shares in the charter capitals of companies associated with Konstantin Strukov, the main owner of Uralkali. However, no specific details about the reason for the lawsuit or the nature of the companies associated with Mr. Strukov have been disclosed.
On July 3, the Soviet District Court of Chelyabinsk took measures to secure the Prosecutor General's lawsuit, as reported by TASS. Meanwhile, Alpha Broker reported the suspension of transactions in Uralkali shares on the evening of July 3, and the St. Petersburg Exchange prohibited the submission of orders for Uralkali securities from 12:39 Moscow time on July 4.
The decline in Uralkali shares, which closed at 0.4768 rubles on July 4, a decrease of 0.13% from the closing price of July 3, occurred before the Moscow Exchange suspended trading in Uralkali shares. The last update of Uralkali quotes was at 10:29 Moscow time on July 4.
The high volatility in Uralkali's stock mentioned earlier may have been influenced by the Prosecutor General's Office's actions. Financial advisory firm T-Investments recommended reducing positions in Uralkali shares or completely exiting the gold miner's securities. VTB Broker also forcibly closed short positions in the stock.
Trading halts often occur due to significant corporate announcements, regulatory concerns, market volatility, or geopolitical events impacting the company. As a major Russian potash fertilizer producer, potential factors could include geopolitical tensions, regulatory interventions, or major financial disclosures. However, no specific details are found in the available search results regarding the reason for the suspension of trading in Uralkali shares on multiple exchanges in July 2025.
This development is a significant one for Uralkali and the Russian market, and further updates are expected as more information becomes available.
- The Prosecutor General's Office, pursuing various assets, has also targeted shares in companies related to Uralkali's main owner, Konstantin Strukov.
- T-Investments, a financial advisory firm, suggests reducing positions in Uralkali shares or completely exiting the company's securities due to the ongoing volatility.
- Trading halts in Uralkali shares could be attributed to a multitude of factors, such as geopolitical tensions, regulatory concerns, or significant corporate announcements, but the specific reason remains undisclosed.
- The suspension of Uralkali shares from trading on multiple exchanges could have potential implications for both personal-finance and general-news investors, as well as raising questions about crime-and-justice and politics in the business landscape.
