Russian miners are set to be booted from London’s top index tomorrow as a rapid investor sell off since Moscow invaded Ukraine has sent their shares spiralling.
Evraz, which has operations in Russia and Ukraine, has had more than 80 per cent shaved off its share price since the start of the year, with around 60 per cent of those losses booked in the last week alone.
The steelmaker, which counts Roman Ambramovich as a major shareholder, was the worst performer on the FTSE 100 yesterday, plummeting nearly 30 per cent.
Russian gold miner Polymetal International plunged 26 per cent yesterday, taking its losses for the year to date to nearly 80 per cent.
Traders have rapidly ditched shares in the two industrial firms since Moscow sent armed forces into Ukraine last week, likely leading to their exit from the FTSE 100.
”After Russia invaded Ukraine and then stringent sanctions were imposed on Moscow, the fortunes of the Russia focused miners Evraz and Polymetal International have reversed dramatically,” Susannah Streeter, senior investment and markets analyst atHargreaves Lansdown, said.
Short haul airline easyJet had been expected to re-enter the FTSE 100, but its addition is now unlikely after its shares have dropped since the conflict erupted.
Gold miner Endeavour Mining has been boosted by investors pouring into safe haven assets since the war erupted and is now expected to be a late addition to the top index.