Nov. 3 (Bloomberg) -- Russian stocks entered a correction, with the benchmark Micex Index slumping more than 10 percent from its high in October, as oil declined and concern deepened the withdrawal of stimulus measures will slow the global economic recovery.

OAO Rosneft, Russia’s biggest oil company, lender OAO Sberbank and OAO Novolipetsk Steel lost more than 4 percent. The Micex sank 3.8 percent to 1,218.42, with all 30 stocks declining. The gauge has retreated 11.3 percent from its high on Oct. 21, exceeding the 10 percent threshold that defines a so-called correction.

Shares fell from Mumbai to London and commodities retreated after the second interest-rate increase in Australia and a second bank bailout in the U.K. stoked concern the global rebound will falter. HSBC Holdings Plc said the recent selloff in Russian equities created a “good buying opportunity” to invest in the country’s largest energy companies.

Australia’s decision “added to concerns about the withdrawal of stimulus support and a reversal of the interest rate cycle,” Chris Weafer, chief strategist with UralSib Financial Corp. in Moscow, said in an e-mail. “The local markets will not move against the trend in global markets.”

Even after the two-week slump, the Micex index has almost doubled this year as signs the global economy was rebounding from the worst recession since World War II spurred gains in oil and metals prices.

Bear Market

The correction comes four months after the Micex tumbled more than 20 percent from June 1 to June 22, the world’s first benchmark equity index to enter a bear market after global stocks began rallying in March. Since then the index surged 46 percent to Oct. 21, sending valuations to 16.9 times reported earnings, their most expensive level on record.

The gauge traded at 14.4 times profit today, more than the 9.9 average for the price-to-earnings multiple in the last five years. The MSCI Emerging Markets Index of 22 developing nations is valued at 21 times earnings.

Russian markets are closed for public holidays tomorrow, when the U.S. Federal Reserve is scheduled to announce its interest-rate policy.

“A drop in risk appetite is a main reason for today’s decline” as well as lower commodity prices, Artur Holaev, head of trading at Sobinbank in Moscow, wrote in an e-mail. Investors also closed positions before the holiday and Fed meeting, he said.

Crude for December delivery declined as much as 2 percent to $76.55 a barrel and was at $77.90 at the close of equity trading in Moscow. Copper led industrial metals lower in London, falling as much as 2.8 percent to $6,372.25 a ton. Nickel, tin, zinc and lead also retreated.

Novolipetsk, Norilsk

Novolipetsk, the nation’s largest steelmaker by market value, fell 5.5 percent to 74.97 rubles. Steelmaker OAO Severstal slipped 3.6 percent to 212.40 rubles.

OAO GMK Norilsk Nickel, the nation’s biggest mining company, sank 3.1 percent to 3,826.15 rubles.

Rosneft lost 4.1 percent to 216.89 rubles. OAO Lukoil, the country’s second-largest oil company, slumped 3.7 percent to 1,651.54 rubles.

“The recent market selloff triggered by the correction in the oil price creates a good buying opportunity,” according to a report today by London-based HSBC analyst Anisa Redman, who upgraded Lukoil, OAO Gazprom and OAO Novatek to “overweight” from “neutral.”

Gazprom, the world’s biggest natural-gas producer, slipped 3.9 percent to 173.92 rubles. Novatek, the nation’s second- largest natural-gas company, sank 0.5 percent to 139 rubles.

Financial stocks retreated after UBS AG, Switzerland’s largest bank, posted a fourth straight quarterly loss, missing analysts’ estimates, and the Royal Bank of Scotland Group Plc said it will receive a second bailout from the U.K. government.

Sberbank lost 4.8 percent to 63.26 rubles. VTB Group, its smaller competitor, retreated 6.4 percent to 5.55 kopeks.

To contact the reporter on this story: Mark Sweetman in Moscow msweetman@bloomberg.net

Last Updated: November 3, 2009 11:23 EST