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. Last Updated: 07/27/2016

RTS Falls 2% as Oil, U.S. Stocks Take Dip

Shares ended lower Friday as investors cashed in on the market's recent rally to four-year highs and against a backdrop of retreating oil prices and a steep fall in U.S. stocks overnight.

The RTS index closed 2.04 percent lower at 358.910 on turnover of $27.5 million, while the Reuters index of the Moscow Interbank Currency Exchange fell 2.44 percent to 1,613.10 on trade of 3.7 billion rubles ($120 million).

"The market corrected today because of a Friday mood, lower U.S. markets and Brent coming down," said Jacques Polier at Troika Dialog.

The market's rise to a four-year-high last week was fueled by a sharp rise in oil prices, which came on the back of Iraq's announcement last week that it would suspend oil exports for a month.

"But the oil price is still relatively good, and there is good news in the market on LUKoil dividends and Yukos' deal with a Lithuanian oil refinery," Polier added.

Russia's largest oil producer, LUKoil, said Thursday it would almost double its dividends.

On the same day, U.S. energy firm Williams, which owns one-third of Lithuanian refiner Mazheikiu Nafta, and Yukos said they had presented the Lithuanian government with a deal to give Russia's second-biggest oil producer more than a quarter of the Lithuanian company.

Anton Zatolokin, an analyst at investment company Region, said he was not optimistic about the market's short-term prospects.

"The mood in the market is mixed. ... There should be a correction in coming weeks," he said.

Friday's biggest gainers were No. 1 brewer Baltika and flagship airline Aeroflot, which finished up 3.65 percent at $13.630 and 2.56 percent at $0.400, respectively.

Oil stocks fell, with LUKoil finishing down 3.47 percent at $15.290 and Yukos off 1.19 percent at $9.170.

Index benchmark Unified Energy Systems, the national electricity grid, ended down 3.65 percent at $0.1583.