US sanctions pummel stocks, ruble as RUSAL warns of default - News Archive - PRIME Business News Agency - All News Politics Economy Business Wire Financial Wire Oil Gas Chemical Industry Power Industry Metals Mining Pulp Paper Agro Commodities Transport Automobile Construction Real Estate Telecommunications Engineering Hi-Tech Consumer Goods Retail Calendar Our Features Interviews Opinions Press Releases

US sanctions pummel stocks, ruble as RUSAL warns of default

MOSCOW, Apr 9 (PRIME) -- Aluminum giant UC RUSALТs announcement of a possible default in the wake of new U.S. sanctions triggered RussiaТs worst market selloff in years, analysts said.

The MOEX Russia Index fell 8.34% to 2,090.88 and the RTS decreased 11.44% to 1,094.98.

УThis Monday will make it into the history of the Russian stock market for a long time Ц the stock indices crushed to their lowest since 2014 (by the rate of fall),Ф said Vasily Oleinik, an expert at investment company Finam.

УThe reason for the selloff was the new U.S. sanctions as well as mounting escalation of tensions in Syria, where Russia was to blame for everything again.Ф

Yevgeniya Abramovich, head of the currency risks research department at Swiss brokerage house Dukascopy Bank SA, said RUSALТs statement of the impossibility to service its U.S. dollar obligations triggered sales in the ruble as well, which plunged to this yearТs low.

RUSAL plummeted 20.35% to 22.55 rubles, metals giant Norilsk Nickel lost 14.56% to 9,170 rubles, steelmakers Severstal and Novolipetsk Steel (NLMK) fell 5.98% to 837 rubles and 4.73% to 143.31 rubles, respectively.

Oleinik said that Norilsk Nickel was under pressure as tycoon Oleg Deripaska, the core owner of RUSAL, also has a stake in the metals giant. Russian banks provided loans to RUSAL, and top bank Sberbank lost 17.04% to 213 rubles and RussiaТs second largest bank VTB fell 9.03% to 0.0504 rubles, Oleinik said.

The ruble dived 1.9475 rubles against the U.S. dollar to 60.1225 rubles and 2.66 rubles against the euro to 74.04 rubles as of 6.12 p.m. Moscow time, according to the Moscow Exchange.

УPeople sold all most liquid shares, and connected it to the concerns about new possible restrictions for Russian companies. The special feature of the U.S. Countering America's Adversaries Through Sanctions Act is that they may apply sanctions to people and companies that cooperate with and finance other blacklisted companies. Russian companies are intertwined, so these concerns may be grounded,Ф Andrei Kochetkov, an analyst at Otkritie Broker, said.

УNew sanctions may be introduced against Russia in a few coming days meaning the Foreign Ministry will have to retaliate with symmetric measures,Ф Oleinik said.

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

Company Change, % Last price, rbl Trading volume, bln rbl
Sberbank -17.04 213.00 56.368
Gazprom -4.59 135.01 12.229
Norilsk Nickel -14.56 9170.00 12.217
Lukoil -8.10 3620.00 10.851
Rosneft -6.29 299.50 6.739

(57.8332 rubles Ц U.S. $1)


09.04.2018 19:11
Share |
To report an error select text and press Ctrl+Enter
Central Bank Official Rate
1W 1M 1Y
EUR 70.5552 -0.1219 18 jul
USD 62.9451 +0.1322 18 jul
Stock Market Indices
Stock Quotes in RUR
1D 1W 1M 1Y
gazp 220.19 -7.49 18:49 17 jul
lkoh 5206.00 +0.30 18:48 17 jul
rosn 421.10 +0.17 18:47 17 jul
sber 234.63 -0.05 18:49 17 jul
MICEX Ruble Trading
1D 1W 1M 1Y
EURTD 70.4400 +0.0300 14:59 17 jul
USDTD 62.8725 +0.0775 17:44 17 jul