The Russian stock market has resumed its decline after going through the strongest wave of sales since 2022 in June.
In Monday’s transactions, the Moscow Stock Exchange index fell by 2.1% and reached its lowest level since February 2023. Since the beginning of the summer, the index has lost 14%, and since the start of the year – 22%.
After 17 consecutive weeks of decline, the market has returned to the levels of the first months of the war against Ukraine. According to InvesFuture analysts, approximately 15% of the traded shares have reached historical lows.
“The mood of investors is close to panic,” asserts Finam strategist, Iaroslav Kabakov.
In parallel, Russian state bonds are also declining. The price index of these has reached the lowest point of the last year, and the yields of long-term securities have exceeded 16% annually.
Analysts explain the decline through simultaneous economic and geopolitical pressures. According to them, the prospect of peace negotiations has reached a deadlock, and investors no longer even react to positive news, after a prolonged period of expectations without results.
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