April 9, 2018 / 7:31 AM / 3 months ago

Russian stocks, rouble slide as sanctions weigh on market

MOSCOW, April 9 (Reuters) - Russian stock indexes and the rouble fell on Monday after the United States hit Russian companies and officials as part of a round of new sanctions against Moscow.

Washington announced the sanctions on Friday, striking at associates of President Vladimir Putin in one of its most aggressive moves to punish Moscow for a range of activities, including alleged meddling in the 2016 U.S. election.

At 0720 GMT, the dollar-denominated RTS index was down 3.18 percent at 1,196.04 points, its lowest since Feb. 12. The rouble-based MOEX Russian index was 2.55 percent lower at 2,222.70 points.

The rouble was 0.68 percent weaker against the dollar at 58.58 and had lost 0.63 percent to trade at 71.83 versus the euro.

Shares in some Russian companies targeted by the new sanctions, notably those associated with Russian businessman Oleg Deripaska, plunged immediately following the announcement and continued to fall after the market opened on Monday.

“The biggest blow was taken by public companies controlled by Oleg Deripaska, namely Rusal and En+,” ATON analysts wrote in a note.

Shares in EN+ Group, which manages Deripaska’s aluminium and hydropower assets, were down more than 18 percent in Moscow and 9.8 percent on the London stock exchange as of 0720 GMT.

Shares in Rusal, a Russian aluminium giant also included on the sanctions list, tumbled 29 percent on the Moscow Exchange before recovering to trade down 22 percent at 22 roubles per share. Rusal shares listed in Hong Kong fell 49 percent.

“For Rusal and En+, we expect clarification from the companies and their beneficial owner, which could shed light on the potential scale of the negative effect and possible actions to minimize it,” ATON analysts said.

“At the current stage, it is premature to suggest any implications for the tradable equity or debt instruments of Rusal and En+.”

For Russian equities guide see

For Russian treasury bonds see

Reporting by Jack Stubbs; Editing by Mark Potter

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