Russia Stocks Snap 2 Days of Losses on Crude Gains, U.S.
(Corrects index move in second paragraph.)
Russian stocks slid for the third day as crude oil and other commodities declined, damping the appetite outlook for producers.
The Micex Index (INDEXCF) slipped 0.4 percent to 1,446 by the 6:45 p.m. close in Moscow. Federal Grid Co., the Russian monopoly for high-voltage transmission, slipped 3.8 percent. Mining company OAO Mechel (MTLR) dropped 2 percent and OAO Rosneft, Russia’s biggest oil producer, declined 1.1 percent.
Oil for December delivery fell 7 cents to $85.66 a barrel in New York, erasing an earlier gain of as much as 1.2 percent. Crude and gas account for about 50 percent of state revenue in Russia, the world’s biggest energy exporter. The Standard & Poor’s GSCI Spot Index of 24 raw materials lost 0.4 percent, dropping for a fourth day.
“Russia remains recidivist underperformer despite overall rosy hue due to reporting season,” Julian Rimmer, a trader of Russian stocks at CF Global Trading, wrote in e-mailed comments.
U.S. stocks advanced, sending the Standard & Poor’s 500 Index up from the lowest level in seven weeks, amid better-than- estimated corporate earnings by Procter & Gamble Co., the world’s largest consumer-products and Aetna Inc., the third- biggest U.S. health insurer.
The Micex trades at 5.6 times estimated earnings after gaining 3.1 percent this year. That compares with a multiple of 10 times for the MSCI Emerging Markets Index, which has added 9 percent. Russian equities have the lowest valuations based on estimated earnings among 21 emerging markets tracked by Bloomberg.
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