By Rachel Nielsen
Russian markets took a small bath Tuesday and
the ruble continued to get a scrubbing by the dollar, following
mixed global markets and lowered oil prices.
The MICEX Index dipped 2.2 percent to close at
1384.79. Losers on the ruble-denominated exchange included oil
giants LUKoil and Rosneft, which both fell more than 5 percent, as
well as Sberbank and Norilsk Nickel, which were each down more than
3 percent.
On the dollar-denominated RTS Index, the market
decline was greater, with a 2.8 percent drop that left the index at
1444.33.
Meanwhile, the ruble added to its Monday losses
against the dollar, falling 0.8 percent to 30.34 rubles per dollar.
The Monday loss came after Central Bank First Deputy Chairman
Alexei Ulyukayev said Friday that the ruble may reach the upper
limit of the regulator's currency basket in "the near term."
The Russian currency is now at its lowest point
against the dollar since Dec. 22.
The main factors in Tuesday's ruble drop were
external, said Alexandra Yevtifyeva, senior economist at VTB
Capital. Typically, she said, "the currency reacts to the general
mood in the equity markets," and on Tuesday Russian exchanges "took
the lead from the Asian markets."
The Hang Seng in Hong Kong and the Shanghai
Composite Index both posted decreases of 2.4 percent.
Mark Rubinstein, deputy head of research
for Metropol, attributed the drops in Russia partly to "negative
dynamics in the markets in Europe," with slight drops during
Europe's intraday trading amplified in Russia's bourses. He also
said profit taking and oil's continuing descent were weighing on
stocks.