MOEX Russia Index Tumbles to 3-Year Low on Broad Sector Weakness

Russia's main stock benchmark, the MOEX Russia Index, fell sharply on Friday, closing down 2.83% to reach a new three-year low. The decline was driven by a broad-based sell-off, with significant losses concentrated in the country's pivotal Oil & Gas, Mining, and Power sectors.

Market Breakdown

The session in Moscow saw selling pressure across the board, with declining stocks significantly outnumbering advancers by a margin of 165 to 82, while six remained unchanged, according to data from the Moscow Stock Exchange.

Investor uncertainty appeared to be on the rise, as reflected by the Russian Volatility Index (RVI). The RVI, which measures the implied volatility of MOEX options, climbed 2.48% to 52.98, marking a new 52-week high.

Notable Stock Movers

Several major Russian companies experienced steep declines, with some hitting multi-year or all-time lows:

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• Aeroflot (AFLT) was the worst performer on the index, plummeting 14.14% to a three-year low.
• Gold miner Polyus (PLZL) dropped 8.07%, hitting a five-year low.
• State-controlled energy giant Gazprom (GAZP) fell 6.10% to a record low.

In contrast, a few companies bucked the negative trend. The session's top performers included Bank VTB (VTBR), which rose 3.89%, and pipeline operator Transneft (TRNF_p), which added 3.20%.

Commodity and Currency Context

The drop in Russian equities occurred despite a strong rally in the energy markets. Brent crude, the international oil benchmark, rose 4.63% to trade at $88.13 a barrel, while WTI crude gained 4.46% to $82.47 a barrel.

In currency markets, the Russian ruble showed mixed performance. The USD/RUB pair fell 0.74% to 77.52, indicating a stronger ruble against the U.S. dollar, while the EUR/RUB pair edged up 0.09% to 89.44.