BLBG:Russian Stocks Tumble for Third Day as Commodities Decline
Russian stocks fell for a third day as oil, gold and silver dropped, cutting revenue for the country’s commodity exporters.
The Micex Index of 30 stocks lost 1.2 percent to 1,635.57 as of 11:31 a.m. in Moscow, the lowest intraday price since May 6. OAO Lukoil and OAO Rosneft, Russia’s two largest oil producers, fell 2.2 percent and 1.5 percent, respectively. OAO Polymetal, a producer of silver and gold, sank 3.9 percent to the lowest intraday price since Oct. 5. The dollar-denominated RTS Index slid 1.9 percent to 1,871.78.
Crude for June delivery traded in New York retreated more than $3 per barrel since the Micex closed yesterday. Silver lost 3.6 percent to $34.2375 per ounce today, while gold fell 0.3 percent to $1,495.38 per ounce.
“For investors that have been wary of Russia risk this year, the combination of falling oil, stronger dollar and fresh fears over the strength of global recovery vindicates their cautious stance over the short term,” Chris Weafer, chief strategist at UralSib Financial Corp., wrote in an e-mailed note.
The ruble weakened 1 percent to 27.9405 per dollar. Earlier, it lost as much as 1.2 percent, the biggest depreciation since May 6 on an intraday basis.
To contact the reporter on this story: Jack Jordan in London at jjordan22@bloomberg.net;
To contact the editor responsible for this story: Stephen Kirkland at skirkland@bloomberg.net.
