MOEX Russia Index Falls 2.7% to Three-Year Low on Sector-Wide Losses

Russia's main stock benchmark, the MOEX Russia Index, fell sharply on Wednesday, closing down 2.68% to establish a new three-year low. The decline was fueled by a broad-based sell-off, with significant losses originating in the country's key mining, energy, and power sectors.

Broad-Based Sell-Off Hits Moscow

The session on the Moscow Stock Exchange was characterized by overwhelmingly negative market breadth. According to closing data, falling stocks significantly outnumbered advancing ones by a margin of 222 to 26, with five stocks ending the day unchanged. This indicates that the selling pressure was widespread across the market rather than being isolated to a few names.

Tech and Mining Stocks Lead Decliners

Several prominent companies experienced steep declines, with some hitting historic lows. The session's worst-performing stocks were primarily in the technology and materials sectors.

• VK Company Ltd (MCX:VKCO) plunged 10.35% to an all-time low.
• Diamond miner AK ALROSA PJSC (MCX:ALRS) fell 6.55%, also hitting an all-time low.
• Conglomerate AFK Sistema PJSC (MCX:AFKS) dropped 6.37% to a five-year low.

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In a stark contrast to the market trend, a few stocks managed to post gains. Mobil’nye Telesistemy PJSC (MCX:MTSS) was a notable outperformer, rising 2.92%.

Volatility Spikes Amid Market Turmoil

Investor anxiety was reflected in the Russian Volatility Index (RVI), a key gauge of expected market volatility derived from MOEX index options. The RVI surged 5.80% to 47.07, marking a new 52-week high and signaling heightened uncertainty among traders.

In related markets, commodity prices were mixed, with Brent crude oil ticking lower while WTI crude saw gains. The Russian ruble remained stable against the U.S. dollar and the euro during the session, according to market data.