Shares of the parent company of Mosgorlombard (PJSC MGKL) lost more than 20% of their value in a single trading session, forcing the Moscow Exchange to resort to an emergency mechanism — a discrete auction. This regime allows the exchange to collect buy and sell orders and determine a single transaction price, smoothing out panic selling at random quotes. However, fundamental risks of further decline in the securities remain.
A discrete auction for PJSC MGKL securities was held on November 3 from 12:30 to 13:00 Moscow time. By its conclusion, the company's shares were trading at 0.61 rubles — a decline of 21.94% for the session.
What is behind the collapse in quotes
The trigger was MGKL's second technical default — a delay in coupon payment on its bonds. The total unpaid amount was 20.14 million rubles, with a coupon rate of 24.5% per annum and an issue volume of 1 million securities. Investors reacted to the event instantly, which crashed the shares.
In parallel, the chairman of the Moscow Exchange board decided to include nine MGKL bond issues in the increased investment risk sector starting from the opening of trading on November 5. The list includes eight issues of series 001P-01 through 001P-08 and the G01 issue of the third listing level, available exclusively to qualified investors.
A day earlier, on November 2, the National Rating Agency (NRA) downgraded MGKL's credit rating to C|ru| — one of the lowest levels on the scale — and maintained its "under review" status. The agency's analysts linked the decision to the technical default and uncertainty over the timing of debt resolution.
Ban on short selling and regulatory pressure
The National Clearing Centre (NCC) banned short selling of MGKL shares from November 5 — betting on a decline using borrowed securities. The reason was the first coupon delay on the 001P-07 issue and the tax service's blocking of accounts of eight group subsidiaries totaling approximately 1.22 billion rubles.
The situation around MGKL coincided in time with a dispute over how reliably the exchange protects retail investors. Central Bank Deputy Chairman Vladimir Chistyukhin criticized the platform for more often siding with companies rather than securities holders when discussing new requirements for issuers.
Holders of debt securities face a growing probability of not receiving payments on time, and MGKL itself will find it harder to raise money on the market. Retail investors planning to review their portfolios before the end of the year should take into account the holiday schedule: the Moscow Exchange will not hold trading on the stock and derivatives markets on December 31, so the last trading day of 2026 will be December 30.
Cryptalist analysis: The MGKL case demonstrates a classic credit risk spiral: a technical default on a coupon is instantly transmitted into a share price collapse and tighter trading rules, while a rating downgrade to C|ru| effectively closes the issuer's access to refinancing. The signal for the market is twofold — on the one hand, the discrete auction mechanism and the short-selling ban limit panic selling; on the other, moving the securities into the increased risk sector narrows the investor base and increases pressure on quotes. Until clarity emerges on the timing of debt resolution, MGKL shares remain an asset with elevated volatility and limited liquidity.