Russian stocks decrease on fears of new COVID surge

MOSCOW, Dec 8 (PRIME) -- The Russian stock market plunged on Wednesday despite the overall positivity of global market sentiment, as the shadow of the new Omicron strain of COVID loomed over the markets, analysts said.

The MOEX Russia Index fell 2.57% to 3,773.61 and the RTS decreased 2.09% to 1,612.73.

The MOEX Russia Index fell amid sell-offs in the financial sector, as well as fears of new lockdowns in Europe amid fear of Omicron, Alexei Golovinov, lead analyst at PSB Bank, said.

According to Alexandra Ovchinnikova of Sber Asset Management, uncertainty around the Omicron strain continued to restrain stock market gains today. Despite the fact, moderately positive sentiment prevailed on the world markets, as U.S. index futures were trading up, and Asian and European stocks were in the green zone.

A moderately corrective mood, together with continuing geopolitical tensions, provoked risk aversion today, Yelena Kozhukhova of Veles Capital said.

The geopolitics has been put on the back burner after the long-awaited conversation between Putin and Biden, Vladislav Silayev of Alfa Capital believes.

The shares of the banking sector remained the leaders of the decline amid sanctions risks, which in the worst-case scenario would affect the entire financial system of Russia, Kozhukhova noted.

Below are the MOEX Russia Index’s five most active stocks on Wednesday:

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-5.88	291.57	65.406
Gazprom	-2.28	337.11	24.434
Lukoil	-3.01	6518	13.021
Norilsk Nickel	-0.16	21886	5.501
TCS Group	-6.04	6166.6	4.880

(74.1399 rubles – U.S. $1)

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