BLBG:Micex Pares Biggest Gain in 7 Weeks After Moody’s Euro Warning
Russian stocks fell, paring the Micex (INDEXCF)’s biggest gain in seven weeks, after Moody’s Investors Service warned of downgrades for European banks and the U.S. urged the region’s leaders to act to save the single currency.
The Micex Index fell 0.2 percent to 1,464.08 at 10:19 a.m. in Moscow, trimming yesterday’s 3.9 percent surge, the biggest since Oct. 6. The dollar-denominated RTS Index was little changed at 1,475.03.
“There was a very audible sigh of relief across all markets yesterday” after the U.S. reported better-than-expected economic data, but Europe’s monthly confidence report is the focus today, said Troika Dialog, the Moscow-based investment bank being acquired by OAO Sberbank. “This is the first major survey since the escalation of debt fears.”
All but five of the Micex’s 30 component stocks declined, led by pipeline operator OAO Transneft, Moscow utility OAO Mosenergo and coal producer OAO Mechel all sliding more than 1 percent. Transneft decreased 1.8 percent to 49,666 rubles, while Mosnergo slumped 1.2 percent to 1.98 rubles and Mechel dropped 1 percent to 302.10 rubles
President Barack Obama renewed pressure on European leaders to prevent a dismantling of the single currency before euro-area finance ministers meet today to seek a resolution to the two- year-old crisis. Moody’s said it may cut ratings on lenders in 15 European countries as a “rapid escalation” of the crisis threatens the region.
Gazprom Neft, Rosneft
Crude oil, Russia’s biggest export earner, dropped from the highest close in more than a week before a report forecast to show that U.S. crude and gasoline stockpiles increased.
Futures for January delivery fell as much as 98 cents to $97.23 a barrel in electronic trading on the New York Mercantile and were at $97.55 at 8:50 a.m. in Moscow.
OAO Gazprom Neft, the oil arm of the world’s largest gas producer, dropped 1 percent to 137.65 rubles, while bigger rivals OAO Rosneft and OAO Lukoil slid 0.6 percent and 0.3 percent to 215.93 rubles and 1,707.10 rubles, respectively.
OAO Magnit, the country’s biggest food retailer by market value, aluminum maker United Co. Rusal and potash producer OAO Uralkali (URKA) all gained.
Magnit rose 0.8 percent to 2,900.50 rubles, Rusal advanced 0.4 percent to 223.50 rubles and Uralkali climbed 0.2 percent to 241.68 rubles.
To contact the reporters on this story: Brad Cook in Moscow at bcook7@bloomberg.net;
To contact the editor responsible for this story: Hellmuth Tromm at htromm@bloomberg.net
