The Russian stock market erased all its gains made this year and fell to
levels of late 2012 Friday, dragged down by declining oil prices and
continuing outflows from Russia-dedicated funds.
The ruble-based Micex index was down 0.68% at 1475.89 points
at 1148 GMT after falling briefly to 1466.84, its lowest level since
Dec. 25, 2012.
"The downside trend formed two weeks ago. The global market
has turned into downside correction after touching new highs and the
Russian market has followed oil prices," said Geldy Soyunov, chief
analyst at Alfabank.
Prices for Brent crude, one of the most influential drivers of
the Russian market, dropped below $110 per barrel Friday from levels of
around $118 in mid February.
Data from China, which showed the manufacturing sector
expanded at a slower pace than expected, also took its toll on global
commodity and metal prices, bruising Russia's blue chips. Shares in OAO Gazprom (GAZP.RS) dropped 2%, the country's largest oil producer OAO Rosneft (ROSN.RS) was down 1%.
On concerns about U.S. debt issues, funds are leaving the
emerging markets, data from EPFR Global showed. In the week to Feb. 27,
Russia-dedicated investment funds have reported net outflows of $65
million, bringing the year-to-date figure to $212 million.
"This week's data indicates that investors are becoming
increasingly wary of their positive stance towards emerging markets.
This increases the risks of higher outflows over the next few weeks,
which puts at risk the market gains achieved in the past three months,"
analysts at Uralsib Capital said in a note.
Intraday volatility in declines on the Micex along with
technical analysis indicators suggest that the index could soon drop
towards 1425 points, analysts at RosEuroBank said.