Russian stocks slump as investors flee from risk
MOSCOW, Jun 8 (PRIME) -- Russian stocks fell on Friday in line with global bourses as investors fled from risk ahead of the Friday–Saturday summit of the Group of Seven leading industrialized states (G7), analysts said.
The MOEX Russia Index fell 2.08% to 2,267.92 and the RTS decreased 2.42% to 1,142.90.
“It is obvious that investors tried to play safe before the long weekend and prior to the G7 summit that started today…Their escape from risk has lasted for six weeks. The start of withdrawal of money from emerging markets took place at the same time with worsening of trade confrontation between the U.S. and China and as U.S. treasuries’ yields rose above 3%,” Sofya Kirsanova, an analyst at managing company Raiffeisen Capital, said.
“The threat of trade wars is still there, and the possibility of the U.S. Federal Reserve System raising its rates four times is still high, so there is no reason for investors to return to risky assets,” Kirsanova said.
Vasily Oleinink, an analyst at investment company Finam, said that the condition of risky assets had worsened all over the world. The composite index of the Asian region lost about 1.5% today, while full-scale crises shake the markets of Turkey, Argentina, Brazil, South Africa, and Indonesia.
“The crisis will soon come to Russia,” he said, adding that capital movements from emerging markets are connected with normalization and toughening of monetary policy in Europe and in the U.S.
Andrei Kochetkov, an analyst at Otkritie Broker, said that the contraction of oil price undermined the price of Russian energy companies, with gas giant Gazprom, oil major Lukoil, and oil company Surgutneftegas losing 2.05%, 2.13%, and 3.19%, respectively.
Oil major Rosneft gained 0.25% as investors expected the company to gain some preferences during President Vladimir Putin’s visit to China, Kochetkov said.
Below are the MOEX Russia Index’ five most active stocks on Friday:
|Company||Change, %||Last price, rbl||Trading volume, bln rbl|
(61.8125 rubles – U.S. $1)