Russian Stocks Hit 3-Year Low at 2,117.5 After 17-Week Slide as Ukraine Strikes Deepen Selloff
Updated
Updated · UNITED24 Media · Jul 7
Russian Stocks Hit 3-Year Low at 2,117.5 After 17-Week Slide as Ukraine Strikes Deepen Selloff
3 articles · Updated · UNITED24 Media · Jul 7
Summary
The Moscow Exchange Index fell 3.4% this week to 2,117.5, its lowest level in more than three years and down 40% from its May 2024 peak.
Analysts tied the 17-week selloff to weaker economic expectations, persistent inflation and the risk of further central-bank rate hikes, with Ukrainian drone attacks on energy assets accelerating the decline.
Gazprom Neft sank 8.3% after a strike halted its Moscow refinery until at least 2027, with repairs estimated at $1 billion; Gazprom lost 21% since early June and VTB dropped 7.2% this week.
The market slump coincides with a broader investment squeeze: first-quarter capital investment fell 14.3% year on year, corporate profits dropped 26%, and state investment slipped to 5.2 trillion rubles from 5.4 trillion.
With its economy in a nosedive, is Russia's war machine running on borrowed time?
With its economy increasingly dependent on Beijing, is Russia trading sovereignty for survival?
As its western economy fails, can Russia's pivot to Asia create a sustainable new economic model?
Russian Stock Market Hits Three-Year Low as MOEX Index Suffers Historic Losing Streak
Overview
The MOEX Russia Index has plunged to a three-year low, reflecting a significant and sustained downturn in the Russian market. Over the past year, the index has lost nearly 20% of its value, with a sharp 12% drop in just the last 14 weeks. This historic 15-week losing streak has now surpassed the declines seen during the 2008 global financial crisis, highlighting the unprecedented severity of current market conditions. The report connects these declines to a mix of economic challenges, cautious monetary policy, and ongoing geopolitical tensions, painting a picture of deepening instability in Russia’s financial landscape.