Moscow market wavers despite diplomatic progress signals
The Moscow stock exchange reacted with declines following diplomatic talks in the capital of Saudi Arabia. Although the MOEX index reached 3,300 points, marking its highest level since May of the previous year, many companies experienced significant stock price deterioration.
The market initially reacted positively to the meeting between U.S. Secretary of State Marco Rubio and Russian Foreign Minister Sergey Lavrov. The announcement about establishing teams to work on ending the conflict in Ukraine and the planned creation of a consultative mechanism for handling "sensitive" matters in U.S.-Russian relations is of particular importance to investors.
Significant declines in the industrial sector
Among the companies recording the biggest losses was Raspadskaya, whose shares fell by 6%. The energy sector also faced problems—KubanEnrg lost 5.47% of its value. A significant decline, reaching 4.45%, was also noted by the developer PIK.
Bank shares also lost value. VTB Bank experienced a 4.12% drop, and Moskovskiy Kreditnyi Bank fell by nearly 4%. AFK Sistema lost 3.36%, and Severstal shares decreased by 3.3%.
Commodity companies under pressure
Despite general optimism related to the possible end of the war, Gazprom lost 3.15% of its value during the session. Declines also affected other commodity companies—Alrosa, which specializes in diamond mining, lost 2.4%.
Technology and transportation company shares also fell on the Moscow stock exchange. Yandex lost 3.12%, Federal Grid more than 3%, and Aeroflot almost 3%.
Despite these declines, investors remain optimistic about the future. They particularly hope for a softening of Washington's stance towards Moscow and the possibility of lifting sanctions. The potential reintegration of the Russian capital market into the global financial system could significantly increase exports and lead to an influx of foreign investments into the Moscow stock exchange.
However, the Bank of Russia maintains a cautious stance towards these hopes. The key interest rate remains high at 21%, and monetary authorities do not rule out further increases in the coming month.
