Story
Russian Stocks Tumble 2.13%, MOEX Index Reaches 3-Year Low
Summary
Russia's benchmark stock index fell sharply on Friday, closing at its lowest point in three years amid broad-based losses in the mining, energy, and power sectors. The sell-off was accompanied by a weaker ruble and a spike in market volatility.
Russian equities ended the week on a downturn, with the benchmark MOEX Russia Index falling 2.13% to close at a new three-year low on Friday. The decline was driven by significant losses across key sectors of the Russian economy.
Broad-Based Sector Declines
The sell-off was led by pronounced weakness in the Mining, Oil & Gas, and Power industries, according to market data. Market breadth on the Moscow Stock Exchange was decidedly negative, with falling stocks outnumbering advancing ones by a wide margin of 175 to 65, while 10 remained unchanged.
Reflecting heightened investor anxiety, the Russian Volatility Index (RVI), which measures the implied volatility of MOEX options, rose 1.05% to 46.01, marking a new six-month high.
Notable Stock Movers
Several major companies experienced sharp declines, hitting multi-year lows. Key movers included:
Ad- Polyus PJSC (PLZL): The gold miner was the session's worst performer, plunging 10.79% to close at a five-year low.
- AK ALROSA PJSC (ALRS): The diamond producer's shares declined 3.23%, falling to an all-time low.
- RusHydro PJSC (HYDR): The hydro-generating company saw its stock drop 2.76% to a five-year low.
On the upside, a few firms bucked the trend, including steel and mining company Severstal PJSC (CHMF), which gained 1.00%.
Currency and Commodity Context
The decline in equities coincided with a weakening of the Russian ruble. The currency fell against major counterparts, with the USD/RUB pair rising 1.52% to 77.31 and the EUR/RUB pair climbing 0.96% to 87.87.
In commodities markets, prices for key Russian exports also softened. Crude oil for August delivery fell 0.79% to $71.51 a barrel, while the Brent oil contract for September delivery slipped 0.38%.