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MOEX Russia Index Tumbles 2.13% to Three-Year Low on Commodity Sector Weakness
Summary
Russia's main stock index fell sharply to its lowest point in three years, driven by significant losses in the mining, oil, and gas sectors. The decline was accompanied by a spike in market volatility and a weakening of the ruble.
Russian equities ended the week on a sharply negative note, with the benchmark MOEX Russia Index falling 2.13% to close at a new three-year low on Friday. The sell-off was driven by steep declines in the country's key mining, oil and gas, and power sectors, according to market data from the Moscow Exchange.
Broad-Based Sell-Off
The downturn was widespread, with falling stocks outnumbering advancing ones by a margin of 175 to 65, while 10 ended the session unchanged. This broad-based weakness points to souring investor sentiment regarding the outlook for Russia's commodity-dependent economy.
Several major resource companies led the losses, with some hitting multi-year or record lows. The session's worst performers included:
- Polyus PJSC (PLZL): The gold miner's shares plummeted 10.79% to a 5-year low.
- AK ALROSA PJSC (ALRS): The diamond producer's stock declined 3.23%, reaching an all-time low.
- RusHydro (HYDR): Shares of the state-owned hydropower company dropped 2.76% to a 5-year low.
AdA few companies bucked the negative trend, with steelmaker Severstal PJSC (CHMF) managing a gain of 1.00%.
Market Indicators Signal Concern
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, a new six-month high.
The equity market slide coincided with pressure on the Russian ruble. The currency fell 1.52% against the U.S. dollar to 77.31, while also losing ground against the euro. The decline in stocks also occurred alongside a drop in global crude oil prices, a key driver for the Russian market.