MOEX Russia Index Tumbles 2.13% to Hit Three-Year Low

Russian stocks ended Friday's session sharply lower, with the benchmark MOEX Russia Index falling 2.13% to reach a new three-year low. The decline was broad-based, led by significant losses in the country's key mining, oil and gas, and power sectors.

Market Sentiment Sours

At the close of trading in Moscow, the index was weighed down by widespread investor pessimism. Data from the Moscow Stock Exchange showed that declining stocks significantly outnumbered advancing ones by a margin of 175 to 65, with 10 issues ending the day unchanged.

Reflecting the heightened market anxiety, the Russian Volatility Index (RVI), which measures the implied volatility of MOEX options, climbed 1.05% to 46.01. This marked a new six-month high for the gauge, indicating rising uncertainty among investors.

Mining and Energy Stocks Lead Losses

The downturn was most pronounced among major commodity producers, with several prominent companies seeing their share prices fall to multi-year or record lows.

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• Polyus PJSC (PLZL): The gold miner's shares plummeted 10.79%, hitting a 5-year low.
• AK ALROSA PJSC (ALRS): The diamond producer's stock fell 3.23% to an all-time low.
• RusHydro PJSC (HYDR): The hydropower company's shares dropped 2.76%, also reaching a 5-year low.

A small number of stocks bucked the negative trend, including steelmaker Severstal PJSC (CHMF), which managed a gain of 1.00%.

Broader Market Pressures

The negative sentiment in equities was mirrored in currency and commodity markets. The Russian ruble weakened against major currencies, with the USD/RUB pair rising 1.52% to 77.31.

Pressure on Russia's commodity-heavy index was also reflected in falling energy prices. Brent crude, the global benchmark, fell 0.38% to trade at $76.01 a barrel, while WTI crude declined 0.79% to $71.51 a barrel, according to market data.