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. Last Updated: 07/27/2016

MICEX Leads Worldwide Declines

The MICEX Index dropped the most in 11 weeks Monday, leading declines worldwide, as oil fell below $70 a barrel and metals producers slumped on reports that the government plans to introduce export duties.

LUKoil and mining company Norilsk Nickel slipped more than 3 percent. Uralkali fell 7.3 percent after Potash Corp. of Saskatchewan cut its full-year profit target. The 30-stock MICEX lost 3.6 percent to 1,165.11, the steepest drop since July 6.

The MICEX has surged 88 percent this year, making Russia the world’s third-best performing equity market after Peru and Sri Lanka, on speculation that the global economic recovery will boost demand for raw materials. Oil, the country’s biggest export, has more than doubled from this year’s low in February.

“We don’t have a strong catalyst that would support the stocks today,” said Vladimir Osakovsky, an economist in Moscow at UniCredit. “Crude oil is declining and therefore the market is going down.”

Oil fell for a third day, dropping as much as 4.1 percent to $69.10 in New York. It traded at $69.21 at the close of equity trading in Moscow.

The government plans to introduce export duties on all London-traded nonferrous metals, a department head with the Industry and Trade Ministry said Sept. 18, Interfax reported.

“The market at large has only priced in duties on nickel, and as such the announcement should have a negative bearing on Norilsk Nickel’s share price,” Troika Dialog wrote in a research note dated Monday.