Diplomatic talks spark mixed reactions on Moscow stock exchange
The Moscow Stock Exchange reacted with declines due to diplomatic talks taking place in the capital of Saudi Arabia. Although the MOEX index reached 3300 points, marking its highest level since last May, many companies are simultaneously experiencing significant downturns in their valuations.
The market initially responded positively to the meeting between U.S. Secretary of State Marco Rubio and Russian Foreign Minister Sergey Lavrov. The declaration to establish teams focused on ending the conflict in Ukraine and the planned creation of a consultative mechanism for addressing "sensitive" issues in U.S.-Russia relations is of particular importance for investors.
Significant declines in the industrial sector
Among the companies recording the largest losses was Raspadskaya, whose shares fell by 6 percent. The energy sector also faced problems, with KubanEnergo losing 5.47 percent of its value. Developer PIK also experienced a significant drop of 4.45 percent.
The banks' shares also lost value. VTB Bank recorded a decline of 4.12 percent, and Moskovskiy Kreditnyi Bank fell by nearly 4 percent. AFK Sistema lost 3.36 percent, and Severstal's shares decreased by 3.3 percent.
Resource companies under pressure
Despite the overall optimism regarding a potential end to the war, Gazprom lost 3.15 percent of its value during the session. Declines also affected other resource companies, with Alrosa, engaged in diamond mining, losing 2.4 percent.
On the Moscow market, shares of technology and transport companies also decreased. Yandex lost 3.12 percent, Federal Grid over 3 percent, and Aeroflot nearly 3 percent.
Despite these declines, investors remain optimistic about the future. They are particularly hopeful 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 inflow of foreign investments into the Moscow Stock Exchange.
However, the Bank of Russia maintains a cautious stance regarding these hopes. The main interest rate remains high at 21 percent, and monetary authorities do not rule out further increases in the coming month.
