Collapse of the stock market in Russia broke the record of spring 2020

Last Tuesday, Russian stock market showed another fall amid panic sales, which were associated with increased geopolitical risks around the Russian Federation.  Stock indices showed a pullback that surpassed a similar drop in the spring of 2020, when the coronavirus pandemic had just begun.

The result of the fall was a decline in prices for shares of different categories. Thus, the cost of ‘blue chips’ fell by an average of 10.7%. This affected the securities of such major players as Rosneft, Sberbank, and OZON. Among the shares of the ‘second tier’, there are RN-Western Siberia PJSC, GTL PJSC and Belona that demonstrated the largest rollback. The value of their securities fell by 10-12%, Interfax reports.

Against the backdrop of ‘falling’ shares of X5 Retail, the CEO of the Pyaterochka convenience store chain announced his resignation.

The chain is the company's main source of income. The vacant position has already been taken by the former CEO of Perekrestok supermarkets.

Experts believe that among the reasons for the fall of the Russian stock market, the negative news background plays an important role. Investors, in particular foreign ones, are losing interest in Russian shares, increasingly selling securities.

The fact is that the Russian stock market has significantly fallen in price. A similar situation over the past decade occurred only twice: in 2014 against the background of Ukrainian events and in 2020 in connection with the beginning of the coronavirus pandemic.