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. Last Updated: 07/27/2016

Correction Brings RTS Down 4%

Russian shares closed lower Monday as profit-taking erased some of the gains that pushed the benchmark RTS index to four-year highs last week, traders said.

The RTS closed 3.6 percent lower at 319.490 on turnover of $25.5 million while the broader Reuters Russian Composite fell 4.30 percent to 2,044.26.

The RTS gained 8.5 percent during the course of last week and reached levels unseen since it was on its way down in the months before Russia's 1998 financial crisis.

The Reuters index of the ruble-based Moscow Interbank Currency Exchange, dominated by local investors, closed down 4.36 percent at 1,472.43 on trade of 4.1 billion rubles.

"It is profit-taking with selling coming from short-term traders and no selling seen from big foreign funds," said Martin Diggle, a director at Brunswick UBS Warburg.

Traders said a serious correction that would last more than few sessions was unlikely with the market still buoyed by higher oil prices, the market's main driver, as many of its blue chip firms are oil producers.

Oil stocks closed mixed Monday. Russia's fifth-largest oil producer, Tatneft, ended 5.77 percent at $0.5775 as No. 1 LUKoil closed off 3.01 percent at $12,900. Last week's big gainer Yukos dived 7.8 percent to $7,450.

Unified Energy Systems trailed the market, falling 5.46 percent to $0.1628 as Sberbank, bucked the trend to close up 1.05 percent at $96.50.