Market close overview
Russia's equity market finished the session on Wednesday with pronounced declines as selling pressure in the Mining, Oil & Gas and Power sectors weighed on the benchmark. At the close in Moscow the MOEX Russia Index fell 4.25% to mark a fresh three-year low.
Top and bottom movers
Among the better performers on the MOEX Russia Index, GDR ROS AGRO PLC ORD SHS (MCX:AGRODR) was unchanged at 1,083.80, recording no change in price and remaining at 52-week lows. Moskovskiy Kreditnyi Bank PAO (MCX:CBOM) declined 0.86% to 8.19. PIK SHb PJSC (MCX:PIKK) slipped 1.43% to finish at 571.90.
The session's largest falls were recorded by several resource-related and conglomerate names. TATNEFT n.a. V.D. Shashin (MCX:TATN) dropped 5.93% to 466.60, falling to three-year lows. AFK Sistema PJSC (MCX:AFKS) declined 5.81% to 11.94, while United Company Rusal IPJSC (MCX:RUAL) lost 5.79% to close at 28.24.
Breadth and volatility
Market breadth was heavily negative: on the Moscow Stock Exchange decliners outnumbered advancers by 220 to 24, with 7 issues ending unchanged. The Russian Volatility Index - RVI, which tracks implied volatility for MOEX Russia Index options, rose 9.18% to 44.95, reaching a six-month high.
Commodities and FX moves
In commodities trading, Gold futures for August delivery fell 3.21% or 133.00 to $4,016.40 per troy ounce. Crude oil for August delivery slipped 4.56% or 3.34 to $69.87 a barrel, while the September Brent contract inched up 0.04% or 0.03 to $73.44 a barrel.
Currency pairs showed little movement against the rouble in the session snapshots provided: USD/RUB was unchanged at 74.90 and EUR/RUB was unchanged at 85.07. The US Dollar Index Futures was reported up 0.15% at 101.32.
Key points
- MOEX Russia Index dropped 4.25% to a new three-year low as mining, oil and power names led losses.
- Market breadth was weak with 220 decliners versus 24 advancers; several large-cap names including TATN, AFKS and RUAL posted declines near or exceeding 5%.
- Implied volatility climbed - the RVI rose 9.18% to 44.95 - while gold and August crude futures fell and Brent ticked marginally higher.
Risks and uncertainties
- Elevated implied volatility (RVI up 9.18% to 44.95) signals greater option-market uncertainty, which could affect trading conditions across Russian equities and derivatives.
- Declines in commodity prices, notably gold and August crude, may continue to pressure resource and energy-sector names already among the worst performers.
- Broad market weakness, reflected in the 220-to-24 ratio of decliners to advancers, indicates concentrated downside risk across multiple sectors including Mining, Oil & Gas and Power.
Note: All prices, percentages and counts are those reported at the Moscow close for the session described.