MOEX Russia Index Plunges 4.26% to Three-Year Low on Broad Sell-Off

Russian stocks experienced a sharp downturn on Thursday, with the benchmark MOEX Russia Index plunging 4.26% to close at a new three-year low. The sell-off was widespread, led by significant losses in the country's key power, oil and gas, and mining sectors.

Widespread Losses Drive Market Decline

The decline on the Moscow Stock Exchange was broad-based, with falling stocks outnumbering advancing ones by a margin of 235 to 11, according to exchange data. Seven stocks ended the session unchanged.

Investor anxiety was reflected in the Russian Volatility Index (RVI), which measures the implied volatility of MOEX options. The index surged 9.84% to 51.70, marking a new 52-week high and signaling heightened market uncertainty.

Tech and Metals Stocks Lead Plunge

Several major companies saw their shares hit multi-year lows amid the heavy selling pressure. The day's worst performers were concentrated in the technology and basic materials sectors.

Key decliners on the MOEX included:

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• VK Company Ltd (MCX:VKCO): Tumbled 13.34% to reach an all-time low.
• Polyus PJSC (MCX:PLZL): The gold miner's shares fell 12.99%, hitting a five-year low.
• United Company Rusal IPJSC (MCX:RUAL): The aluminum producer dropped 12.24%, also to a five-year low.

In contrast, Moskovskiy Kreditnyi Bank (MCX:CBOM) was a notable outperformer, gaining 7.20%. Magnitogorskiy Metallurgicheskiy Kombinat (MCX:MAGN) also ended slightly higher, adding 0.10%.

Commodities and Currencies Context

The equity market turmoil occurred as commodity prices showed mixed signals. Gold futures for August delivery traded down 1.77%, potentially adding pressure to mining stocks like Polyus.

Meanwhile, oil prices remained relatively stable, with August WTI Crude futures down just 0.03% and the September Brent contract unchanged. In currency markets, the USD/RUB and EUR/RUB pairs were also reported as unchanged at the close, showing stability despite the equity market volatility.