Bloomberg News

Russia’s Micex Snaps Three Days of Gains as Oil Slides on Europe

January 12, 2012

Jan. 11 (Bloomberg) -- Russian stocks snapped three days of gains after oil declined from a one-week high, damping the outlook for the world’s biggest energy exporter.

The 30-stock Micex Index slid 0.8 percent to 1,465.47 by the 6:45 p.m. close in Moscow, after adding 2 percent yesterday. OAO Gazprom, the natural gas export monopoly, lost 0.7 percent, while oil producer OAO Tatneft dropped 2 percent. OAO Sberbank, Russia’s largest lender, sank 2.1 percent. The dollar- denominated RTS Index retreated 1.2 percent to 1,452.69.

Oil, Russia’s chief export earner, lost 0.9 percent to $101.31 a barrel in New York trading. Germany’s economic growth slowed last year and Spanish factory output shrank the most since 2009, reports showed today. The European Union is Russia’s largest trading partner. Russian stocks surged to their highest level in a month yesterday as oil climbed after Venezuela said OPEC wouldn’t intervene to offset sanctions against Iran.

“The markets look set for a breather today after a very powerful rally yesterday,” UralSib analysts Slava Smolyaninov and Leonid Slipchenko said in a research note e-mailed today.

Metals producers advanced. United Co. Rusal, the world’s biggest aluminum producer, surged 5.6 percent to 206 rubles. OAO GMK Norilsk Nickel, the world’s largest producer of the metal, added 0.8 percent to 5,252 rubles.

OAO Magnit rose 4.7 percent to 3,084.9 rubles, its highest close since Nov. 8. The Russian supermarket chain said net retail sales surged 42 percent to 336 billion rubles ($11 billion) last year.

The Micex trades at 5.5 times analysts’ earnings estimates for member companies, the lowest among the so-called BRIC nations which include Brazil, India and China. The index plunged 17 percent in 2011, compared with an 18 percent slide for Brazil’s Bovespa index, which trades at 9.5 times estimated earnings according to data compiled by Bloomberg. The Shanghai Composite Index trades at 9.3 times estimated earnings, and the BSE India Sensitive Index has a ratio of 14.1.

-- Editors: Alex Nicholson, Peter Branton

To contact the reporters on this story: Jason Corcoran in Moscow at jcorcoran13@bloomberg.net;

To contact the editor responsible for this story: Frank Connelly at fconnelly@bloomberg.net


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