Russian stocks fell for a third day as oil, the nation’s chief export earner, declined, trimming appetite for equities in the world’s biggest energy exporter.
The Micex Index (INDEXCF) lost 0.6 percent to 1,475.42 by the close in Moscow, the lowest since Nov. 13 and poised for the biggest monthly retreat since May. OAO Rosneft, the nation’s biggest oil company, dropped 0.8 percent to 237.50 rubles, the lowest since Aug. 27. Natural gas exporter OAO Gazprom slid 0.6 percent to 142 rubles. Coking-coal producer OAO Mechel (MTLR), which is the worst performer on the gauge this month with a 40 percent slump, lost 4.6 percent to 62.60 rubles.
Crude oil tumbled 1.5 percent to $92.31 in New York, a fourth day of declines. Russia receives about half its budget revenue from natural gas and oil sales. Most metals fell on the London Metal Exchange, including tin and lead. The S&P GSCI gauge of 24 commodities has declined 4.1 percent this year.
“We’re seeing a drop in oil, metal prices,” Oleg Popov, who manages $1 billion of securities for Allianz Investments, said by phone from Moscow. “It’s a correction trend -- we’ve dropped for five days out of the past six. Investors are fixing profits and falling crude is one of the factors.”
Rosneft and Gazprom have a combined weighting on the Micex of about 19 percent.
OAO Lukoil, Russia’s second-biggest oil producer, fell 0.7 percent to 2,053.89 rubles. Lukoil’s net income in the third quarter fell 12 percent to $3.11 billion from a year earlier as gains on lower tax the previous year weren’t repeated, the company said yesterday. That beat the $3.03 billion average estimate of analysts surveyed by Bloomberg.
“Investors are taking the money out of riskier assets and putting them into developed markets,” Yuri Selyandin, a portfolio manager who helps manage about $2 billion at GHP Group in Moscow, said by phone. “Russia’s growth rate is weak and there’s fear that Russian companies won’t be able to show good financial results in the future.”
OAO Sberbank, the nation’s biggest lender, closed 0.6 percent lower at 102.76 rubles. Its global depositary receipts fell 1.4 percent to $12.42 in London. Net income at the Moscow-based bank climbed 8 percent to 94.6 billion rubles ($2.9 billion) compared with the same period last year, it said in a statement on its website today.
The lender’s 2013 profit is seen at the “lower-end” of estimates, because of slower Russian economic growth, Deputy Chief Executive Officer Alexander Morozov said on a conference call today.
Russia’s gross domestic product growth slowed for six quarters through June and was unchanged at 1.2 percent in the three months to Sept. 30, Federal Statistics Service data show. It will expand 1.8 percent in 2013, slowing from 3.4 percent last year, according to the Economy Ministry.
Health-care and telecom shares led declines among nine industry groups on the Micex. OAO MegaFon, Russia’s second-largest wireless operator, fell 4.6 percent to 1,038 rubles. Its depositary receipts lost 1.7 percent to $32.26 in London. OAO Mobile TeleSystems decreased 2.3 percent to 310.20 rubles.
The RTS Index (RTSI$) retreated 0.9 percent to 1,404.31, the lowest since Sept. 13. Russia’s equities have the cheapest valuations among 21 emerging economies monitored by Bloomberg, with shares on the benchmark trading at 4.3 times projected 12-month earnings, compared with a multiple of 10.5 for the MSCI Emerging Markets Index.
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