Russian Stocks Fall for 18 Consecutive Weeks, MOEX Index Drops by 8.72%

The Russian stock market ended the week with the MOEX index falling by 8.72% to 1958.4 points, marking the lowest level since October 2022. This decline is the steepest since September 2022, when the index dropped by 14.18% following the announcement of "partial mobilization." The series of declines has now lasted for 18 weeks, the longest period of decline since 1997. Over the past few months, the market has lost nearly 30% of its capitalization, returning to levels not seen since the summer of 2016. Shares of major companies such as Gazprom (-21%), Surgutneftegas (-20.8%), and Aeroflot (-26.7%) have significantly decreased in value. The market is affected by geopolitical risks, the threat of new sanctions, and expectations of an increase in the Central Bank's key rate. Analysts also point to a possible hidden supply of shares from large investors. Russian billionaires are actively withdrawing money from the country due to concerns over worsening economic conditions and the risk of asset confiscation. Economic troubles are confirmed by a GDP growth of only 0.2% from January to May and a record decline in investments. It is forecasted that the Russian economy may enter a recession in July, which could last for at least a year.

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