Minus 50% of the value for the quarter: rating of the 10 most affected stocks

In the first quarter, the market had to work under sanctions and at a new level of rates. All this was reflected in the fall of the indices.

The first quarter of 2022 was a time of great shock for the Russian stock market. The Moscow Exchange Index showed the largest drop in its history during the trading session. On February 24, the index fell by 45.49% compared to the previous close, reaching a low of 1681.55 points.

The largest collapses of the Moscow Exchange index

By the end of the day, the market calmed down and the index lost 33.3% by the end of the day. The next day, Friday, February 25, the index showed an increase of 20%, closing at 2470.48 points.

But the following weekend, it was announced that the Bank of Russia's external gold and foreign exchange reserves were being blocked and that some large Russian banks were disconnected from SWIFT. Under these conditions, the Central Bank decided not to open trading on the stock section of the Moscow Exchange on Monday. Trading in shares of Russian issuers   resumed almost a month later, on March 24.

On March 31, the value of the Moscow Exchange index was fixed at 2703.51 points, which means a quarterly decline of 28.62%. But many papers lost much more in price.

The most depreciated Russian stocks

The ten most depreciated shares of Russian companies lost an average of 50.58% of their value in the first quarter. Moreover, the spread in the value of the fall in the top ten ranged from 44.2% for the share in tenth place to 58.9% for the leader of the fall.

Shares of Russian companies that have fallen in price in the first quarter

The shares of VTB became the most depreciated paper. The financial group was included in the very first sanctions lists and was disconnected from SWIFT. In addition to VTB, the top drop leaders include ordinary and preferred shares of Sberbank, the largest commercial bank in RUSSIA, which was also significantly limited in international transactions.

In total, out of ten stocks with the largest price losses of the quarter, six securities are representatives of the financial sector. This was also reflected in the dynamics of sectoral indices. The Moscow Exchange Finance Index remained negative by 45.2% in the quarter.

Dynamics of sectoral indices of the Moscow Exchange in the first quarter

However, the papers of TCS Group (the parent company of Tinkoff Bank), St. Petersburg Stock Exchange, Renaissance Insurance, began a directional decline last fall. Shares of "Renaissance Insurance" and the St. Petersburg stock exchange generally appeared on the stock exchange only in October and November last year, respectively, and showed a decrease almost all the time after the listing.

Not only finance

The situation is similar with CIAN depositary receipts   . The first price of the paper on the Moscow Exchange in November 2021 was fixed at ₽1,250.6 per receipt. And by February 22 (on the eve of the collapse), the securities of the real estate marketplace were already worth ₽514.2, i.e. 2.4 times cheaper. Therefore, even after showing a growth of 28% in two days after the resumption of trading in March, the paper remained in the list of the most depreciated in the quarter, taking second place.

CIAN receipts are included in the information technology index of the Moscow Exchange. This index showed the largest losses in the first quarter. By the end of March, its value decreased by 47.6%. But the overwhelming weight in this index (75.6%) belongs to Yandex shares, which also appeared on the list of the most depreciated securities. For the quarter, Yandex quotes fell by 50.56%. Various restrictive measures are being applied against the company, which may have a negative impact on debt servicing.

Among the strongly "failed" sectoral indices is the index of construction companies. Analysts expect the deterioration of the financial position of builders and developers with an increasing risk of default. In our list of the most depreciated stocks, there are representatives of this sector as well - these are PIK shares.

Closes the top ten depreciated shares of the Neftekamsk Bus Plant. NEFAZ is a subsidiary of KAMAZ, which also fell under foreign sanctions . But, nevertheless, the papers of the plant showed a steady decline since the beginning of the year from the level of ₽612 to ₽389 (February 22). Therefore, despite the growth of 39.7% at the auction on March 31, according to the results of the quarter, NEFAZ papers remained in the list of outsiders.

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A security tied to the shares of a particular company and issued by a bank (depository bank). The main opportunity that a depositary receipt gives an investor is the opportunity to practically own shares of a foreign company, but at the same time remain within the framework of the legislation of the depository bank. For example, an American Depository Receipt (ADR) for the shares of a Russian company is, on the one hand, an American security, the trade of which is regulated by American law, on the other hand, it gives the right to a share of profits and the right to vote at a meeting of shareholders of a Russian company securities. The issuer can be both an individual and a legal entity (companies, executive authorities or local governments).