Micex Drops From Month-High as Gazprom Snaps 5-Day Rising Streak

Russian stocks fell after climbing to the highest level in a month and OAO Gazprom, the natural-gas export monopoly with the biggest weighting in the benchmark index, snapped five days of gains.

The Micex Index (INDEXCF) lost 0.9 percent to 1,410.87 as of 3:23 p.m. in Moscow. The gauge rose to the strongest since July 17 yesterday. Gazprom sank 0.9 percent to 133.30 rubles after advancing 7.7 percent in the previous five days. OAO Sberbank, Russia’s largest lender and the third-biggest stock by weighting in the Micex, dropped 1.4 percent to 96.60 rubles.

The 14-day relative strength index on the Micex subsided to 57 from 63 yesterday, the highest in three weeks. The RSI measures how rapidly prices have advanced or dropped during a specified time period. Readings below 30 indicate a security may be poised to rise, while those above 70 signal a potential drop. Sixty-five percent of economists surveyed by Bloomberg predict the U.S. Federal Reserve will opt next month to pare bond-buying that helped fuel a rally in emerging-market assets.

“Russian markets are undergoing a slight correction,” Vadim Bit-Avragim, a portfolio manager at Kapital asset Management in Moscow, said by phone. “The uncertainty of not knowing what the Fed will do is weighing on the markets.”

The Micex rallied 4.5 percent in the four days through Aug. 14. The dollar-denominated RTS Index dropped 0.7 percent to 1,347.17.

Equities in Russia, the world’s biggest energy exporter, sank even as Brent crude advanced to its highest intraday level in more than four months. Worsening violence in Egypt fanned concern that Middle East oil supplies may be disrupted.

Brent climbed 0.7 percent to $110.93 a barrel in London. Russia receives about half of its budget revenue from oil and natural gas sales. OAO Lukoil, the nation’s biggest non-state controlled crude producer, fell 0.5 percent to 1,969.10 rubles.

To contact the reporter on this story: Valeriya Ivashchenko in London at vivashchenk1@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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