Russian stocks finished the session lower on Friday, with the MOEX Russia Index retreating 0.70% to close at a new six-month low. Declines among mining, oil and gas, and power companies pressured the benchmark lower by the close in Moscow.
The sessions top movers on the MOEX Russia Index included AFK Sistema PJSC (MCX:AFKS), which advanced 4.15% or 0.48 points to end at 12.06. United Company Rusal IPJSC (MCX:RUAL) gained 1.45% or 0.50 points to finish at 34.56, and NOVATEK PJSC (MCX:NVTK) rose 0.32% or 3.40 points to close at 1,071.00.
On the downside, AK ALROSA PJSC (MCX:ALRS) led losers with a 4.73% slide, down 1.21 points to 24.36 at the close. PhosAgro PJSC (MCX:PHOR) dropped 2.11% or 135.00 points to 6,248.00, while LUKOIL PJSC (MCX:LKOH) fell 1.90% or 94.50 points to finish at 4,883.00.
Market breadth on the Moscow Stock Exchange favored falling issues by a wide margin: 168 names declined, 71 advanced and 12 ended unchanged.
Notable intra-session price milestones included shares of AK ALROSA PJSC (MCX:ALRS) touching five-year lows with the 4.73% decline to 24.36, and LUKOIL PJSC (MCX:LKOH) sinking to three-year lows after the 1.90% fall to 4,883.00.
The Russian Volatility Index - RVI, which tracks implied volatility for options on the MOEX Russia Index, ticked up 0.40% to 22.73 by the close.
Commodity markets were mixed during the session. Gold futures for August delivery rose 0.83% or 37.50 to $4,569.90 a troy ounce. In energy contracts, crude oil for July delivery declined 1.28% or 1.14 to $87.76 per barrel, while the August Brent contract slipped 1.20% or 1.11 to $91.59 per barrel.
Foreign exchange moves accompanied the equity weakness. USD/RUB was higher, up 1.38% to 72.08, while EUR/RUB eased 0.06% to 82.79. The US Dollar Index Futures closed down 0.08% at 98.89.
Summary
- The MOEX Russia Index fell 0.70% to a six-month low, led by losses in mining, oil and gas, and power sectors.
- AFKS, RUAL and NVTK were among the sessions gainers; ALRS, PHOR and LKOH were among the laggards.
- Market breadth favored decliners 168 to 71; RVI rose modestly and USD/RUB strengthened.
Key points
- Sectors impacted: Mining, Oil & Gas and Power saw the largest downward moves, weighing on the overall index.
- Commodity influence: Gold gained while crude benchmarks declined, reflecting mixed pressures across commodity markets.
- Currency and volatility signals: A firmer USD/RUB and a slight uptick in the RVI point to modestly higher risk perceptions in Moscow-listed instruments.
Risks and uncertainties
- Elevated implied volatility - The RVI rose 0.40% to 22.73, indicating some increase in option-implied market uncertainty that could affect equity and derivatives trading.
- Commodity price swings - Declines in crude oil prices (Brent and WTI) may continue to pressure energy-sector names and related market sentiment.
- Currency moves - A stronger USD/RUB (up 1.38% to 72.08) introduces exchange-rate risk for ruble-denominated assets and cross-border flows.