BLBG:Russian Stocks Retreat for First Day in Four as Oil Price Drops
Russian stocks declined, snapping three days of advances, as crude oil prices fell and the country’s services-industry growth slowed, signifying weaker economic activity.
The Micex Index of 30 shares fell 0.7 percent to 1,538.86 by 10:55 a.m. in Moscow. OAO Surgutneftegas, Russia’s fourth- biggest oil producer, declined 1.4 percent. OAO Mechel, the coalmaker, dropped 1 percent while VTB Group, the nation’s second-biggest lender, retreated 1.1 percent.
Brent crude for May settlement declined as much as 49 cents to $103.52 a barrel in electronic trading in New York, adding to yesterday’s 1.2 percent drop, on signs that U.S. crude stockpiles rose and speculation the Federal Reserve may hold off additional monetary stimulus to support the economy of the world’s biggest energy consumer. The HSBC Russia Services PMI fell to 54.4 last month from 55.3 in February, HSBC Holdings Plc said in a report today.
OAO Rosneft (ROSN), the country’s biggest oil company, fell 1 percent to 209.98 rubles. OAO Gazprom, Russia’s gas export monopoly, retreated 0.9 percent to 183.50 rubles.
The Russian currency depreciated 0.9 percent to 29.4125 per dollar, its weakest level this week. OAO Sberbank, Russia’s biggest lender, retreated 0.6 percent to 97.31 rubles a share.
Russian stocks rallied by 8.2 percent in the first quarter, the biggest quarterly gain in more than a year, and are up 9.7 percent year to date on signs the global economy recovery is spurring demand for commodities.
The Market Vectors Russia exchange-traded fund, a U.S.- listed ETF that holds Russian shares, rose 0.1 percent to $31.24 yesterday and the Russian Depositary Index (RDXUSD) of London-traded shares of Russia’s companies jumped 2.6 percent. Moscow’s Micex Index (INDEXCF) trades at 5.9 times analysts’ earnings estimates for member companies, below the 10.7 ratio for the MSCI Emerging Markets Index.
To contact the reporter on this story: Denis Maternovsky in Moscow at dmaternovsky@bloomberg.net
To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net
