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Posted on January 30, 2012
Russian stocks fell for a second day as oil, the country’s chief export, declined amid speculation the European Union summit today will fail to draw a line under the sovereign-debt crisis.
The Micex Index (INDEXCF) of 30 stocks retreated 0.8 percent to 1,496.26 by 1:06 p.m. in Moscow, adding to a 0.4 percent drop on Jan. 27. United Co. Rusal (RUALR), the world’s largest aluminum company, and OAO Gazprom Neft, the oil arm of Russia’s gas export monopoly, slid 2.3 percent and 1.8 percent respectively. The dollar-denominated RTS Index slipped 0.8 percent to 1,553.11, heading for its biggest drop since Jan. 11.
Oil, Russia’s main export revenue earner, fell as much as 0.8 percent to $98.74 a barrel in New York, after declining 14 cents on Jan. 27. EU leaders will meet in Brussels today to put finishing touches on a German-led deficit-control strategy and endorse a 500 billion-euro ($657 billion) rescue fund.
Gazprom Neft retreated to 147.63 rubles, heading for its lowest level since Jan. 16, while Russian depositary receipts of United Co. Rusal posted the biggest decline in the Micex today to 233.01 rubles as metal prices declined.
The Micex has gained 6.8 percent this year and trades at 5.7 times analysts’ earnings estimates for member companies. That compares with an 11 percent gain so far in 2012 for Brazil’s Bovespa index, which is at 10 times estimated earnings, according to data compiled by Bloomberg. The Shanghai Composite Index trades at 9.4 times estimated earnings, and the BSE India Sensitive Index has a ratio of 14.8.
To contact the reporter on this story: Denis Maternovsky in Moscow at email@example.com
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