Russian stocks plunged the most in more than two months, with OAO Rosneft and OAO Gazprom among the biggest decliners, as crude’s drop to a four-month low cut appetite for equities in the world’s biggest energy exporter.
The Micex Index slid 1.4 percent, the most since Aug. 15, to 1,507.26 by the close in Moscow. Natural-gas export monopoly Gazprom, which has the heaviest weighting on the benchmark, decreased 2.3 percent to 150.30 rubles. Rosneft retreated 2.1 percent to 254.46 rubles, the most since Aug. 6.
The declines today trimmed the Micex’s advance from this year’s low in June to 18 percent. Crude lost 1.9 to $96.48 a barrel 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.”
OAO Sberbank, Russia’s biggest lender, retreated 2 percent to 103.25 rubles in the capital and 2.3 percent to $12.96 in London. Rosneft tumbled 2.1 percent to $7.965 in London, while Gazprom decreased 2.1 percent to $9.445.
The RTS Index dropped 1.5 percent to 1,494.96, the most since Aug. 15. The dollar-denominated gauge rose 20 percent from this year’s low on Oct. 10, entering a bull market.
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 rose to 15.775 from 14.43 yesterday.