Sector Performance and Key Movers
The market decline was broad-based, with 204 stocks finishing lower while only 33 managed to post gains. The telecommunications, mining, and oil & gas sectors led the downturn, demonstrating the broad-based nature of the selling pressure.
Among the few bright spots, Moskovskiy Kreditnyi Bank PAO (MCX:CBOM) showed resilience, edging up 0.08% to close at 6.38. GDR ROS AGRO PLC ORD SHS (MCX:AGRODR) managed to hold steady, finishing unchanged at 1,083.80, though it hit a one-year low. Transneft PJSC Pref (MCX:TRNF_p) showed relative strength compared to its peers, declining only 0.88% to 1,328.00.
The hardest-hit stocks included PIK SHb PJSC (MCX:PIKK), which plummeted 8.28% to 538.10, AFK Sistema PJSC (MCX:AFKS) which dropped 7.56% to 15.40, and Rostelekom PJSC (MCX:RTKM) which fell 4.27% to 56.93. These declines highlight the significant selling pressure on financial and telecommunications companies.
Commodity and Currency Markets
The Russian ruble came under pressure against major currencies, with USD/RUB rising 1.29% to 78.24 and EUR/RUB climbing 1.63% to 89.84. This currency weakness could potentially benefit export-oriented companies, though the overall market sentiment remained negative.
Volatility Measures
Market volatility as measured by the Russian Volatility Index (RVI) declined 5.95% to 40.31, suggesting that while prices moved sharply lower, expectations about future volatility actually decreased somewhat. This could indicate that investors are pricing in the current geopolitical risks but don’t anticipate further significant deterioration in the near term.
Market Analysis
The sharp decline in Russian equities on Friday reflects several ongoing concerns:
Escalating geopolitical tensions and their potential economic impact
Continued Western sanctions affecting key sectors
Weakness in global commodity markets despite Friday’s energy price rebound
Currency volatility affecting corporate earnings
The outperformance of energy stocks relative to the broader market suggests that commodity prices remain a key driver of investor sentiment in Russia, even as other sectors face significant headwinds. The banking sector’s mixed performance indicates ongoing concerns about credit quality and interest rate pressures.
Looking ahead, investors will likely remain focused on:
Developments in geopolitical tensions
Central bank policy decisions
Commodity price trends
Corporate earnings reports
The market’s sharp decline despite strength in energy prices highlights the complex challenges facing Russian equities, with broader economic concerns outweighing sector-specific positives in the current environment.
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