Russian stocks fell for the second day, led by OAO Sberbank and OAO Gazprom, as crude’s decline to a four-month low reduced appetite for equities in the world’s biggest energy exporter.
The Micex Index (INDEXCF) dropped 0.5 percent to 1,520.73 by 12:57 p.m in Moscow. Natural-gas export monopoly Gazprom, which has the heaviest weighting on the benchmark, decreased 0.8 percent in Moscow and London. Sberbank, Russia’s biggest lender, retreated 1 percent to 104.4 rubles in the capital and 1.4 percent to $13.09 in London.
The declines today trimmed the Micex’s advance from this year’s low in June to 19 percent. Crude lost 0.4 to $97.41 in New York, trading below $100 for the third day and headed for the lowest close since June 28. Russia receives about half its budget revenue from natural gas and oil industry sales.
“The blue-chips are declining with the market today as crude oil has crossed the psychological threshold of $100,” Sergey Kucherenko, who manages about $50 million in Russian equities at OAO Nomos Bank in Moscow, said by phone. “The time has come for the market’s correction.”
The RTS Index (RTSI$) decreased 0.9 percent to 1,505.13. The dollar-denominated gauge rose 20 percent from this year’s low on Oct. 10, entering a bull market. The measure’s 14-day relative strength index slipped to 64 today after rising to 69.8 yesterday, close to the 70 level that indicates to some analysts a security is poised to drop.
Russian equities have the cheapest valuations among 21 emerging economies monitored by Bloomberg, with shares on the Micex trading at 4.4 times projected 12-month earnings, compared with a multiple of 10.7 for the MSCI Emerging Markets Index. Ten-day price swings on the Micex fell to 14.04 from 14.43 yesterday.
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