MOEX Russia Index Hits 3-Year Low as Polyus, VTB Shares Tumble

Russian stocks closed lower on Saturday, with the benchmark MOEX Russia Index falling to a new three-year low. The decline was broad-based, as falling stocks significantly outnumbered advancers and investor anxiety appeared to rise.

Market Sets Multi-Year Low

According to data from the Moscow Exchange, the market's negative performance was reflected in its breadth, with 157 stocks declining compared to just 69 advancers, while 18 ended the session unchanged. This widespread selling pressure pushed the main index to its lowest level in three years.

Indicating heightened investor concern, the Russian Volatility Index (RVI), which measures the implied volatility of MOEX options, climbed to 46.01, a new six-month high. An increase in volatility often accompanies significant market downturns as uncertainty grows.

Heavyweights Drag on Index

Several major companies led the session's downturn, with some hitting historic lows. The day's worst performers were key contributors to the index's slide.

Ad

• Polyus PJSC (MCX:PLZL): The gold miner's shares plunged 4.92% to a five-year low.
• AFK Sistema PJSC (MCX:AFKS): The conglomerate's stock declined by 1.84%, also reaching a five-year low.
• Bank VTB PJSC (MCX:VTBR): Shares of the state-owned bank dropped 0.96% to an all-time low.

In contrast, a few stocks managed to post gains. Moskovskiy Kreditnyi Bank (MCX:CBOM) rose 2.35%, while oil producer TATNEFT (MCX:TATN) added 0.56%.

Ruble Weakens, Commodities Mixed

The Russian ruble lost ground against major international currencies. The USD/RUB pair rose 1.10% to 77.00, while the EUR/RUB pair climbed 0.95% to 87.88, signaling a weaker domestic currency.

In the commodities market, energy prices saw modest declines. Crude oil for August delivery fell 0.93% to $71.41 a barrel, while the international benchmark Brent contract for September delivery slipped 0.38% to $76.01 a barrel. Gold futures for August delivery were also down, dropping 0.65%.