Moscow Stocks at Four-Year Low Ahead of Crimea Referendum

Moscow stocks plunged to a four-year low Friday as jittery investors dumped their holdings ahead of a referendum in Crimea over its bid to break away from Ukraine and join Russia.

The capital's two main indices MICEX and RTS opened down, but losses accelerated to more than 5.0 percent by midday before recovering to 4.37 percent and 4.82 percent, respectively.

MICEX has fallen to a level that has not been reached since September 2009, while RTS is at its lowest point since August 2009.

Analysts from Alfa-Bank said investors were shedding their Russian holdings before the Crimea vote on Sunday, fearful of economic consequences after the West warned of sanctions.

"Barring a last-minute positive surprise, Russia looks set to annex part of a foreign country at gunpoint. That would be the worst breach of international law and the peace in Europe since the Serb war against Bosnia 1992-95," said Holger Schmieding from Berenberg.

However, the analyst said the economic impact on Western markets would "remain temporary and limited".

"The ultimate loser in a standoff between Russia and the West will very likely be Putin," the analyst added.