Russian Stock Market Wipes Out June Gains Due to Oil Price Decline and Global Market Shocks

Strategic Insights -

The Russian stock market suffered significant losses on Wednesday, erasing June gains due to a decline in global stock indices and a further drop in oil prices. The RTS index fell 4.05% to 1038.41 points, while the MICEX plummeted 5.46% to 1039.43 points. The biggest decliners for the day included major oil companies such as MMC Norilsk Nickel, Gazprom, and Lukoil.

Key Takeaways:

  • The Russian stock market wiped out June gains, with the RTS index falling 4.05% and the MICEX declining 5.46% on Wednesday.
  • The biggest decliners for the day included MMC Norilsk Nickel (down 7.5% and 8% on the MICEX and RTS, respectively), Gazprom (down 8% and 6.2% on the MICEX and RTS, respectively), and Lukoil (down 4.3% on the MICEX).
  • European indices lost 1.5%-2% on Wednesday, contributing to the decline in the Russian stock market.
  • Investors were disappointed with forecasts for FedEx earnings, reductions in ratings for 22 U.S. banks by Standard & Poor's, and U.S. statistics on the deficit of accounts.
  • Transneft preferred shares were a notable exception, growing 3.6% to 20,301 rubles, the level seen in early September 2008.

Statistics:

  • The RTS index declined 4.05% to 1038.41 points on Tuesday.
  • The MICEX fell 5.46% to 1039.43 points on Tuesday.
  • MMC Norilsk Nickel shares declined 7.5% and 8% on the MICEX and RTS, respectively.
  • Gazprom shares fell 8% and 6.2% on the MICEX and RTS, respectively.
  • Lukoil shares declined 4.3% on the MICEX.
  • European indices lost 1.5%-2% on Wednesday.
  • Transneft preferred shares grew 3.6% to 20,301 rubles.

Sources:

  • Interfax, "MOSCOW. June 17 (Interfax) -" (no date specified in the original text)