Russian Stocks Decline, Led by Polymetal, Norilsk Nickel Shares

Russian stocks dropped as retreats by companies including OAO Polymetal and OAO GMK Norilsk Nickel offset a rise in oil prices spurred by Apple Inc.’ s better- than-expected profit.

The Micex Index (INDEXCF) of 30 stocks lost 0.5 percent to 1,774.12. at 4:37 p.m. in Moscow. OAO Novolipetsk Steel climbed after announcing it bought out Duferco Group from a joint venture. The dollar-denominated RTS Index rallied 0.8 percent to 2,048.13.

“The market is still pretty cautious on Russia in the light of the U.S. outlook downgrade on Monday,” Tom Mundy, chief strategist at Otkritie Financial Corp., said by phone from Moscow. “The market has been very overweight Russia.”

The Micex dropped 3.7 percent, the most in nine months, April 18 after Standard & Poor’s downgraded its credit-rating outlook for the U.S. to “negative” from “stable.”

Oil for June delivery gained as much as $1.03 per barrel in New York today after Apple earnings indicated consumer demand may help boost the global economy and after the U.S. energy department reported an unexpected drop in crude supplies.

Novolipetsk rose 1.6 percent to 113.99 rubles. The company said it agreed to pay Duferco Group $600 million for its half of their Steel Invest and Finance venture.

Norilsk Nickel

OAO Polymetal slid 4.1 percent to 531.2 rubles even as gold climbed to a record in London and New York for a fifth day. The Russian gold and silver producer cut its 2011 output forecast for the precious metals yesterday due to “schedule setbacks” at its Amursk and Omolon projects.

“The market is trading the company, not the underlying commodity,” Mundy said. “You can see that quite well with Polyus, which is holding up much better” than Polymetal.

OAO Polyus Gold shares gained 3.6 percent to 1,781.9 rubles, the highest intraday price since Feb. 1. Gold advanced to a record high.

Norilsk Nickel dropped for the first day in three, losing 0.7 percent to 7,639 rubles. United Co. Rusal, a shareholder in Russia’s largest mining company, said yesterday the company’s deal to sell 8 percent of its shares to Trafigura Beheer BV lacked transparency.

OAO Aeroflot lost 1.2 percent to 70.33 rubles.