Russia’s stock market edges up despite low trading volumes and sanctions pressure
Russia's stock market today began November with a 1.5% gain, but trading volumes were significantly lower than average. Lukoil's shares dropped 3.5% due to U.S. sanctions, while IT sector stocks surged following a VAT exemption extension. The MOEX Russia Index ended the week up 1.3%, closing at 2,566 points.
On November 3, trading volume was around 30 billion rubles, less than half the average daily turnover. This trend continued throughout the week, with volumes remaining 30-50% below average, indicating reduced equity holdings and increased capital in money market funds and bonds.
Market focus remained on geopolitics, with a gradual upward trend possible if the news backdrop stays neutral. The market stayed in a sideways trend with no clear direction, driven by corporate news or financial reports. Analysts expect trading volumes to rise and a potential modest uptick in the stock market next week, with the MOEX index holding within the 1,500–1,650 range.
Lukoil's shares fell 3.5% after the U.S. Treasury Department blocked Gunvor's purchase of Lukoil's foreign assets. Gazprom's shares also dropped 3.5% on November 6, making up 14.5% of the MOEX Russia Index. Meanwhile, IT sector stocks surged after the announcement of extended VAT exemption for domestic software sales until 2028.
Despite the geopolitical influences and reduced trading volumes, the MOEX Russia Index gained 1.3% by the end of the week. Market participants await further corporate news and financial reports to drive the stock market in the coming weeks.
