MOEX Russia Index Falls to 3-Year Low on Broad Sector Sell-Off

Russia's main stock market benchmark, the MOEX Russia Index, fell sharply at the close of trading on Friday, declining 2.13% to reach a new three-year low. The sell-off was broad-based, with significant pressure on the country's key industrial sectors.

Widespread Declines

The downturn was driven by heavy losses in the mining, oil and gas, and power industries, according to market data. Investor sentiment turned negative, with falling stocks significantly outnumbering advancers on the Moscow Stock Exchange by a margin of 175 to 65, while 10 stocks ended the session unchanged.

Reflecting the increased market anxiety, the Russian Volatility Index (RVI), which measures the implied volatility of MOEX options, rose 1.05% to 46.01, marking a new six-month high.

Key Stock Movers

Several major companies experienced steep declines, with some hitting multi-year or all-time lows.

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• Polyus PJSC (PLZL): The gold miner was the session's worst performer, plummeting 10.79% to a five-year low.
• AK ALROSA PJSC (ALRS): The diamond producer's shares fell 3.23%, reaching an all-time low.
• RusHydro PJSC (HYDR): The hydropower company saw its stock drop 2.76% to a five-year low.

A few stocks bucked the trend, including Severstal PJSC (CHMF), which gained 1.00%, but these advances were not enough to offset the wider market weakness.

Currency and Commodity Impact

The Russian ruble also weakened during the session. The currency fell against the U.S. dollar, with the USD/RUB pair rising 1.52% to 77.31. The ruble also lost ground against the euro, as the EUR/RUB pair climbed 0.96% to 87.87. The declines in equities coincided with weakness in commodity markets, with both crude oil and gold futures trading lower.