Russian stocks drop on new COVID strain fears

MOSCOW, Dec 21 (PRIME) -- The Russian stock market declined on Monday on fears of a new COVID strain, which caused a lockdown in the U.K., analysts said.

The MOEX Russia Index fell by 2.67% to 3,186.38, and the RTS Index plummeted by 4.75% to 1,335.93.

"The markets are falling in fear, reacting to the news on new strains of the coronavirus and strengthening of quarantine restrictions in several countries. But we must bear in mind that there was a strong growth over the last six weeks and few good hopes for what is ahead," Otkritie Broker analyst Andrei Kochetkov said.

Kochetkov said that after seven weeks of increase oil seems overpriced to investors amid the quarantine measures. Besides, the Christmas week favors a correction. Valery Yemelyanov, analyst at investment company Freedom Finance, said that oil fell by more than 5% in some moments, diving to U.S. $49.2 from $51.9. But the emotions calmed down in the evening, and there is hope for a recovery on Tuesday.

The analyst said that the European markets lost up to 3% as Europe is the epicenter of the new outbreak. The Asian markets closed mixed, the MSCI Emerging Markets declined by almost 2%.

He said that all Russia’s key sectors fell – energy and metals ones are to suffer most. Several securities rose against the market as they are seen as protective assets, including Qiwi, rising 1.21%, supported by a low price after a decrease.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Sberbank	-3.8	259.89	28.752
Gazprom	-4.74	202.6	23.538
Lukoil	-1.89	5043	11.716
Norilsk Nickel	-1.02	23200	7.166
Detsky Mir	-4.74	419.75	5.277

(73.3155 rubles – U.S. $1)

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