Russian Stocks Hit 3-Year Low as MOEX Index Tumbles 2.13%

Russian equities fell sharply at the close of trading on Friday, with the benchmark MOEX Russia Index declining 2.13% to reach a new three-year low. The sell-off was broad, driven by significant losses in the crucial mining, oil and gas, and power sectors, according to market data from the Moscow Exchange.

Broad-Based Sell-Off

The negative sentiment was widespread across the market, with falling stocks significantly outnumbering advancing ones by a margin of 175 to 65, while 10 remained unchanged. This indicates a lack of conviction among buyers and widespread selling pressure.

Investor anxiety appeared to be on the rise, as reflected by the Russian Volatility Index (RVI). The index, which measures the implied volatility of MOEX options, climbed 1.05% to 46.01, marking a new six-month high.

Sector and Company Performance

Several major Russian companies experienced steep declines, with some hitting multi-year or all-time lows. The session's worst performers were concentrated in the materials and energy sectors.

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• Polyus PJSC (PLZL): The gold miner's shares plunged 10.79%, hitting a 5-year low.
• AK ALROSA PJSC (ALRS): The diamond producer's stock declined 3.23%, falling to an all-time low.
• RusHydro (HYDR): The hydropower company saw its shares drop 2.76% to a 5-year low.

A few stocks bucked the downward trend, including steel and mining company Severstal PJSC (CHMF), which rose 1.00%.

Currency and Commodity Markets

The Russian ruble weakened alongside the equity market. The USD/RUB pair rose 1.52% to 77.31, while the EUR/RUB gained 0.96% to 87.87, signaling a flight from the Russian currency.

In commodities, oil prices also retreated, with August contracts for Crude oil falling 0.79% and the September Brent contract down 0.38%. Gold futures for August delivery also edged lower, declining 0.29%.