Russian stocks fell for a third day as steelmakers retreated on lower metal prices amid bets the Federal Reserve may start paring stimulus.
The Micex Index (INDEXCF) lost 0.5 percent to 1,465.53 by 11:45 a.m. in Moscow, with 3 stocks up and 47 down. OAO Mechel, the nation’s biggest coking coal producer, sank 1.9 percent to 56.70 rubles. OAO Novolipetsk Steel retreated 1 percent to 53.24 rubles.
Russian stocks fell 2 percent last month, the worst drop for the period since May, amid concern an economic recovery in the world’s biggest energy exporter is foundering. Most metals, including nickel, tin and lead, dropped in London today, as investors speculated on the impact retail and manufacturing data will have on Fed bond buying. The Micex climbed 10 percent in September through October.
“We’ve entered a correction stage,” Sergey Kucherenko, who manages about $50 million in Russian equities at OAO Nomos Bank in Moscow, said by phone. “The Russian market is in a declining mood.”
Russia’s growth will probably miss the government’s 1.8 percent goal in 2013, a pace that would mark the weakest expansion since the recession in 2009, Economy Minister Alexei Ulyukayev said Nov. 13. Russia-dedicated equity fund outflows are set for the worst year on record, with redemptions reaching more than $130 million in the week ended Nov. 27, according to a UralSib Capital note.
OAO Novorossiysk Commercial Sea Port declined 2.1 percent to 3 rubles. OAO Rosneft, the nation’s largest oil producer, is ready to buy Russia’s stake in the port, Prime reported yesterday after the market close, citing Chief Executive Officer Igor Sechin.
OAO Pharmstandard and OAO Mosenergo will be excluded from the Micex and RTS indexes from Dec. 17, according to a statement on the Moscow Exchange’s website. OAO Bank St. Petersburg and OAO KamAZ will be added in their place. Pharmstandard fell 1.3 percent to 1,487 rubles.
The dollar-denominated RTS Index (RTSI$) slid 0.8 percent to 1,387.99. Russia’s equities have the cheapest valuations among 21 emerging economies monitored by Bloomberg, with shares on the benchmark trading at 4.2 times projected 12-month earnings, compared with a multiple of 10.6 for the MSCI Emerging Markets Index.
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