MOSCOW Aug 1 Russia's largest lenders, Sberbank
and VTB, are likely to lead a decline in
Moscow shares on Friday after being hit by sanctions, with a
slump in U.S. markets on global economy concerns and tensions
with Russia also weighing.
Sberbank, VTB and Russia's third largest state bank,
Gazprombank, criticised sanctions imposed by the European Union
on Thursday that cut them off from raising funding on the bloc's
capital markets, but also dismissed the measures.
Sberbank's American Depository shares dropped 2 percent on
the Nasdaq in New York, ending July as its worst
trading month in two years.
VTB's Global Depositary Receipts (GDR), closed 1.5 percent
down in London.
The inclusion of the Russian banks on the EU list of
companies punished for Moscow's support of rebels in Ukraine had
been anticipated after the bloc said earlier this week it was
going to target state-controlled Russian banks.
The EU published the list of the banks on Thursday.
Sberbank closed 0.1 percent down on Thursday in Moscow on
the rouble-denominated MICEX, before the publication of
the list. But with the slump in the U.S. trading , analysts
expect a bigger selloff on Friday.
"Sectoral sanctions on Russia ... which include restrictions
of movement of capital increase the risk of exclusion of Russian
stocks from a number of stock indexes," Oleg Shagov, an analyst
at Promsvyazbank in Moscow, wrote in a note.
"We expect MICEX to start trading about 0.3 percent down."
VTB closed in Moscow nearly 1 percent higher on Thursday,
with MICEX closing down 0.2 percent on the day at 1,379 points.
The dollar-denominated RTS index closed 0.25 percent
down to 1,219 points.
The Dow Jones industrial average suffered on Thursday
its worst daily slump since February, with investors spooked by
poor domestic unemployment data and Argentina's second default
in 12 years.
For rouble poll data see
For Russian equities guide see
For Russian treasury bonds see
Russia in graphics: link.reuters.com/dun63s
(Reporting by Lidia Kelly, editing by Elizabeth Piper)