Russian Banks And Resource Companies See London-Listed Shares Slide On Sanction Fears
A lot of stocks with Russian connections were getting hammered on the London stock market today.
Market makers have marked down a number of high-profile stocks in anticipation of countries in the NATO alliance hitting companies with Russian connections with sanctions after Russia sent troops across the Ukrainian border.
It’s not clear how big an effect this would have on the myriad Russian resource and banking stocks quoted in London, but based on the share price falls of JSC VTB Bank and Sberbank of Russia (OTC:AKSJF), Lukoil, Rosneft (AIM:ROSN), Surgutneftgas, Novatek and Tatneft, a mark-down of 8% seems to be the going rate.
Poor old Amur Minerals Corp, which possesses a wholly-owned nickel sulphide asset located in the far east of Russia, is among the tiddlers caught in the crossfire.
Its shares shot up last month when it revealed it may sell its Irosta Trading subsidiary but the shares were down by one-sixth today as the latest developments possibly put that deal in jeopardy.
Not all tiddlers with snow on their boots have been hit, however; Zaim Credit Systems PLC (LSE:ZAIM), the Russia focused fintech group, is unchanged today and up 6.7% over the last week.
Today’s widespread losses extend the decline of the likes of VTB Bank, Sberbank, Gazprom, Novatek, Tatneft, Rosneft (AIM:ROSN) and Surgutneftgas over the last week to more than 20%.
Conversely, Evraz PLC (LSE:EVR), the FTSE 100 steel, mining and vanadium business with extensive operations in Russia, is up 4.1% today, paring its loss in the last week to 16% while Polymetal International PLC (LSE:POLY), down 1.7% today and off 6.9% over the last week, has also got off relatively lightly. Ditto MMC Norilsk Nickel, which is up 1.5% today and down 11.7% over the last week.
The West talks tough
UK foreign secretary, Liz Truss, has pledged to impose “the toughest sanctions regime against Russia we have ever had”, which may not go down well in the city often referred to as the money laundering capital of the world but will play well in the so-called red wall constituencies.
Songwriters Norman Whitfield and Barrett Strong once posed the question, war: what is it good for?
You might remember the song by The Temptations or Edwin Starr and the reply to the rhetorical question, which was: absolutely nothin’.
Well, that’s not entirely true, as the defence companies seem to do well out of it. On that score, BAE Systems PLC (LSE:BA.) is up 0.3% today, Rolls-Royce Holdings PLC (LSE:RR.) is 2.3% firmer, Chemring PLC is 0.2% heavier but Avon Protection PLC (LSE:AVON), which recently announced it would be winding down its armour business, is off 1.6%.
Cybersecurity firms could come to the fore if relations between Russia and the West get even worse, which might be the reason for Darktrace PLC (LSE:DARK)’s 1.6% advance today.
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