Daily Management Review

Bloomberg: 2022 drop in Russian stocks is the world's worst


Bloomberg reports that Russian stocks are performing the worst globally in 2022. Among the 92 indices it monitors, it said the decline in the Russian RTS Index was the most noticeable.

According to information from the Moscow Exchange, the Russian dollar-denominated RTS stock index fell 34.9 percent for the year (close Dec. 16 vs. close Dec. 30, 2021). Bloomberg ranked it among the worst outcomes in terms of dollars and local currencies among the 92 indices it monitors.

According to Bloomberg, the ruble-based Moscow Exchange index dropped 44 percent in 11 1/2 months, which could be the lowest decline since 2008.

After Russia began the invasion in Ukraine, stock indices and share prices of Russian corporations dropped significantly. Due to this, the Bank of Russia was compelled to halt trading in securities; only one month later did trading in shares resume. The market has since only been able to partially recover its losses. The most valuable stocks in the Moscow Exchange Index, Lukoil and Gazprom, are currently 30% and 53% cheaper than they were at the end of 2021, respectively, and Sberbank is 54% cheaper.

Many investors have withdrawn from the market as a result of the sanctions imposed on Russia, Bloomberg said, despite the fact that foreigners from Western nations are still not permitted to sell equities they possess there. The agency also stated that the funds from local investors were insufficient to prevent the market from plummeting. Peter Mathis, senior currency analyst at InTouch Capital Markets, told Bloomberg that given the sanctions' effect on the Russian economy, the situation is unlikely to get any better.

source: bloomberg.com