The currency and bonds also sank, prompting the central bank to announce its first currency intervention designed to prop up financial stability since 2014, when Russia annexed Crimea from Ukraine.
“In the next few days, the Russian market will be extremely volatile. Given the high risks of tightening sanctions against Russia, we are revising our target benchmarks for Russian stocks.”Evgeny Loktyukhov, Head of Economic and Industrial Analysis at PSB, told Russian outlet Quote.
”There has never been such a significant drop in the recent history of the Russian stock market. The main reason for what is happening is the flight from risks amid the escalation of the geopolitical aspect”added Vladislav Silaev, a senior trader at Alfa Capital. In his opinion, until diplomats and politicians sit down at the negotiating table, the market will remain in the red.
The Russian ruble reached its historical low against the dollar (up 9%), before the intervention of the Russian central bank. The Russian currency weakened 6.7% against the greenback to 86.92 per dollar after hitting a record low of 89.986 per dollar.
Source: Ambito
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