Bloomberg News

Russian Stocks Drop to 3-Week Low on Weaker Oil, Greek Deficit

April 22, 2010

Russian stocks slid to their lowest in more than three weeks as oil prices fell and after the European Union said Greece’s budget deficit last year was worse than it previously forecast.

The country’s two largest oil producers OAO Rosneft and OAO Gazprom Neft both lost more than 1.5 percent. OAO Sberbank, its largest bank, dropped 1.4 percent, pushing the Micex Index (INDEXCF) of 30 stocks down 1.5 percent to 1,443.36 at the close in Moscow, its lowest since March 29.

Crude oil for June delivery fell as much as 2.3 percent to $81.73 a barrel in New York. The EU said Greece’s budget deficit last year was worse than it previously forecast and could exceed 14 percent of gross domestic product, curbing investor appetite for riskier assets.

“The market has been tracking oil for quite some time and the Greek issue has shown it is not going away,” said Tom Mundy, an equity strategist at Renaissance Capital in Moscow.

Stocks in Russia, the world’s biggest energy supplier, rose 8.8 percent in March as commodities rallied on evidence the global recovery is gathering pace.

Copper for July delivery dropped 5.95 cents, or 1.7 percent, to $3.498 a pound in New York. All six metals traded on the London Metals Exchange fell.

To contact the reporter on this story: Jason Corcoran at

To contact the editor responsible for this story: Gavin Serkin at

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