MOEX Russia Index Hits 3-Year Low, Closing Down 2.13% on Sector-Wide Weakness

Russia's benchmark stock market index plunged on Friday, with the MOEX Russia Index falling 2.13% to close at a new three-year low. The sell-off was broad, driven by significant weakness in the country's key mining, oil and gas, and power sectors.

Market sentiment was decidedly negative, with falling stocks outnumbering advancing ones on the Moscow Stock Exchange by a margin of 175 to 65, while 10 remained unchanged, according to market data.

Sector and Stock Movers

The mining sector experienced some of the most severe declines. Shares in precious metals producer Polyus (MCX:PLZL) were the session's worst performers, plummeting 10.79% to reach a five-year low.

Other notable decliners included:

• Diamond producer AK ALROSA (MCX:ALRS), which dropped 3.23% to an all-time low.
• RusHydro (MCX:HYDR), a major hydropower company, which saw its shares fall 2.76% to a five-year low.

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Bucking the downward trend were a few companies, including steel and mining firm Severstal (MCX:CHMF), which rose 1.00%, and real estate developer PIK Group (MCX:PIKK), which added 0.72%.

Broader Market Indicators

Investor anxiety was reflected in the Russian Volatility Index (RVI), which measures the implied volatility of MOEX options. The index climbed 1.05% to 46.01, marking a new six-month high.

The decline in equities coincided with weakness in commodity markets. Crude oil for August delivery fell 0.79% to $71.51 a barrel, while the Brent oil contract for September delivery slipped 0.38%. Gold futures also traded lower.

In currency markets, the Russian ruble weakened against major currencies. The USD/RUB pair rose 1.52% to 77.31, and the EUR/RUB was up 0.96% to 87.87.