Russian stocks plummet on numerous risks, investors’ nervousness

MOSCOW, Nov 22 (PRIME) -- The Russian stock market plummeted on Monday, following investors’ fears of another surge of the COVID-19-related crisis, as well as stress from geopolitical tensions surrounding the country, analysts said.

The MOEX Russia Index fell 3.58% to 3,872.77 and the RTS decreased 5.55% to 1,628.10.

“Today, the Russian stock market suffered its worst blow in 2021, as the growing country risks contributed to the frontal decline in liquid securities and the maintenance of high trading activity,” Yegor Zhilnikov, chief analyst at PSB Bank, said.

“The reasons for the decrease turned out to be quite numerous. A growing number of the Federal Reserve officials are talking about a sooner reduction in bond purchases in order to proceed with a rate hike. Russia’s central bank is also talking about its determination to fight inflation, and the OFZ market is laying down a 100 basis points increase to 8.5%,” Andrei Kochetkov of Otkritie Research said.

Kochetkov added that another wave of COVID-19 that is sweeping Europe, the U.S., and Asia is reminiscent of the spring of 2020 when there was a sharp drop in business activity and demand for commodity assets.

These factors may not get any development, or confirmation, but they clearly make investors nervous, Kochetkov said.

Alexandra Ovchinnikova of Sber Asset Management said, “The news background was quite tense, and foreign investors’ appetite for Russian assets is waning. Market participants are still focused on the situation around the coronavirus on the world platforms, geopolitical risks in Russia and dynamics of oil quotations.”

According to Yelena Kozhukhova of Veles Capital, the Russian stocks were under pressure from negative internal factors, which came from increased geopolitical tensions, as well as the debt situation of state nanotechnology corporation Rusnano.

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

Company	Change, %	Last price, rbl	Trading volume, bln rbl
Gazprom	-3.86	324.6	44.559
Sberbank	-5.33	310.1	41.080
Lukoil	-1.48	6610	10.647
Norilsk Nickel	-1.93	21716	9.389
Yandex	-7.12	5544	8.911

(72.7617 rubles – U.S. $1)

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