MOEX Russia Index Tumbles 2.13% to Three-Year Low on Sector-Wide Losses

Russian stocks ended the week on a downturn, with the benchmark MOEX Russia Index falling 2.13% to close at a new three-year low. The decline was primarily driven by significant losses in the country's key mining, oil and gas, and power sectors.

Broad-Based Sell-Off

The session on the Moscow Stock Exchange saw widespread selling pressure, with falling stocks outnumbering advancers by a margin of 175 to 65, according to market data. This broad-based decline pushed the main equities index to its lowest point in three years, reflecting growing investor concerns.

A few stocks managed to post gains, including Severstal PJSC (CHMF), which rose 1.00%. However, these advances were insufficient to offset the heavy selling in the broader market, particularly among resource-focused companies.

Mining and Energy Stocks Lead Decliners

Several major Russian companies experienced steep losses, with some hitting multi-year or all-time lows. Gold producer Polyus PJSC was the session's worst performer, with its shares plummeting as part of the commodities sector downturn.

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• Polyus PJSC (PLZL): Fell 10.79% to a five-year low.
• AK ALROSA PJSC (ALRS): Declined 3.23%, hitting an all-time low.
• RusHydro PJSC (HYDR): Dropped 2.76% to a five-year low.

Market Volatility and Currency Moves

Underscoring the market's anxiety, the Russian Volatility Index (RVI), which measures implied volatility of MOEX options, rose 1.05% to a new six-month high. The Russian ruble also weakened against major currencies, with the USD/RUB pair climbing 1.52% to 77.31.

The sell-off in Russian equities coincided with modest declines in global commodity markets. Brent crude, a key driver for the Russian economy, fell 0.38%, while gold futures also traded lower, adding pressure to the country's resource-heavy stock market.