Russian Stocks Hit Three-Year Low as Moscow Exchange Index Plunges
The Moscow Exchange Index fell to its lowest level since February 2023, dropping 2.45% on July 6 to 2,187.83 points.
On July 6, the Moscow Exchange Index fell by 2.45%, settling at 2,187.83 points. This is the lowest level since February 27, 2023, according to RBC. Among the worst performers, shares of VTB dropped 10.5%, Inter RAO lost 9.9%, and Transneft's preferred shares decreased by 8.4%. Alexey Devyatov, an analyst at Alfa Investments, explained that the persistent geopolitical tensions and the central bank's restrictive monetary policy continue to pressure the market. He noted that investors see no signs of a turnaround and are therefore pulling capital out of equities. In addition, falling oil prices and a strong ruble are weighing on exporters, which account for more than half of the index's weight. This recent decline follows a sharp drop on June 22, when the index plummeted 4.23% to 2,318.28 points — the steepest daily fall since September 26, 2022. That sell-off was triggered by the Bank of Russia's decision to cut its key rate by only 25 basis points, rather than the 50 that markets had anticipated. The market interpreted the smaller cut as a warning of deeper economic challenges ahead.
