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. Last Updated: 07/27/2016

Indexes Fall in Spite of Oil Prices

Russian stocks dropped sharply Wednesday as a slump on Wall Street on Tuesday caused by concern over the U.S. subprime-mortgage rout prompted investors to sell riskier assets.

Sberbank, the country's biggest bank, and Gazprom, the country's largest company, led the decline.

Brent crude for September delivery ended on a high of $78.21 per barrel Tuesday in New York, but even these strong prices were not enough to dissuade investors from selling Russian energy shares.

LUKoil dropped 3.9 percent to $77.70 per share, while Rosneft declined by 2.28 percent to $8.15.

The ruble-denominated MICEX index slumped 2.4 percent to 1693.14. Four stocks advanced and 26 retreated. The dollar-denominated RTS index lost 2.4 percent to 1946.34.

Sberbank dropped 3 percent to 101.92 rubles on the MICEX. Financial services stocks worldwide were hit Wednesday, with the MSCI World Financials Index falling 1.5 percent.

Gazprom tumbled 3.4 percent to $10.53 on the RTS. The company is the biggest constituent of the Morgan Stanley Capital International Emerging Markets Index, a global benchmark.

Shares of Norilsk Nickel retreated 2.4 percent to 5,562.43 rubles as nickel and copper fell on the London Metal Exchange. Nickel for three-month delivery slipped 1.9 percent to $30,850 a ton, dropping to within $650 of its six-month low. (Bloomberg, MT)