Russian equity markets closed lower on Friday, with the benchmark MOEX Russia Index finishing the session down 1.31% in Moscow. Selling pressure was most pronounced in the Mining, Power and Oil & Gas sectors, which led the broad decline.
Among the strongest performers on the MOEX Russia Index, TATNEFT n.a. V.D. Shashin Pref (MCX:TATN_p) gained 1.41% - an increase of 8.50 points - to finish at 613.10. Ordinary shares of TATNEFT n.a. V.D. Shashin (MCX:TATN) also advanced, rising 1.10% or 7.30 points to close at 672.00. Financial stock Moskovskiy Kreditnyi Bank PAO (MCX:CBOM) rounded out the session's top movers, up 0.51% or 0.03 points to 5.47 in late trade.
On the downside, Magnitogorskiy Metallurgicheskiy Kombinat PAO (MCX:MAGN) led losses, falling 4.71% or 1.26 points to close at 25.62. Social media and tech group VK Company Ltd (MCX:VKCO) declined 3.60% or 10.15 points to end at 272.05, while retail chain Magnit PJSC (MCX:MGNT) was down 3.08% or 96.50 points to 3,033.00.
Declining issues outnumbered advancing ones on the Moscow exchange by 212 to 38, with 1 security unchanged at the close. The Russian Volatility Index - RVI, which tracks implied volatility for MOEX Russia Index options, rose 7.39% to 23.99, indicating higher option-implied volatility compared with the prior session.
Commodity markets showed notable strength during the session. Gold futures for June delivery climbed 2.55% - up $112.30 - to trade at $4,521.30 a troy ounce. Crude oil for delivery in May increased 7.09%, or $6.70, to reach $101.18 a barrel. The June Brent contract rose 4.91% - a gain of $5.00 - to trade at $106.89 a barrel.
Currency moves were modest: the U.S. dollar traded stronger against the ruble, with USD/RUB up 0.16% to 81.50. The euro was effectively flat versus the ruble, with EUR/RUB rising 0.01% to 93.80. The U.S. Dollar Index Futures also advanced, up 0.32% at 100.03.
Market context
The session combined sector-led equity weakness with rising commodity prices and a firmer dollar. Mining, Power and Oil & Gas stocks were among the most affected on the equity side, while energy and precious metals contracts posted gains in futures markets. Volatility, as measured by the RVI, increased noticeably.
What this means for market participants
- Equity market participants face a backdrop of uneven sector performance, with commodity-linked sectors central to the move lower.
- Rising implied volatility may affect option pricing and hedging costs for investors focused on Russian equities.
- Movements in oil and gold futures, alongside modest currency shifts, underscore the cross-market interplay affecting Russian-listed assets.