The MOEX Russia Index plunged 8% to the 2,200 mark on Thursday, the lowest in two months, as the withdrawal of Gazprom's dividend payments triggered a broad sell-off in Russian equities. Gazprom shares plummeted nearly 30% after its board announced the refusal to pay dividends for the 2021 financial year. The state-owned giant had previously announced record-high dividends of RUB 52.53 per share, spurring a rally that significantly outperformed the broader index to near pre-invasion levels. The board remarked that current conditions were not appropriate for profit distribution, as the company must re-invest its resources for the winter. Despite the significant cut of exports to Europe, Gazprom's revenues are estimated to be robust due to surging natural gas prices. It marks the highest profile annulment of dividend payments since the phenomenon became common due to sweeping sanctions from the West, sparking contagion across all sectors this session.
Historically, the MOEX Russia Index reached an all time high of 4292.68 in October of 2021. MOEX Russia Index - data, forecasts, historical chart - was last updated on June of 2022.
The MOEX Russia Index is expected to trade at 2170.53 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1622.64 in 12 months time.