... and the shares you should avoid

THE reaction to Putin’s invasion of Ukraine was swift and comprehensive. Virtually every share in the market lost ground on Thursday and indices ended the week on a low note.

Over the longer term, however, some stocks and sectors are much more likely to lose out as a result of Russian aggression than others.

More than 20 companies incorporated in Russia are currently listed on the London Stock Exchange.

These include the gas giant Gazprom, the massive oil company Rosneft and Sberbank, which is one of the country’s largest financial institutions.

There are several businesses with large Russian interests too, such as Evraz, the steel group backed by Roman Abramovich, Petropavlovsk, the gold miner which operates out of Russia, and Polymetal, which mines gold and silver.

Only an exceptionally brave investor would touch these types of stock today, but many others are likely to come under pressure if Russian aggression persists.

Banks may lose out if economies slow down; travel stocks could suffer

if tensions continue to rise and highly rated tech stocks could fall back too.

Smaller companies tend to be hardest hit during geopolitical crises, but investors should hold their nerve. Some of the best bargains on the stock market can be had when times are tough – so don’t head for the exit just yet.