GO
Loading...

Russian shares, rouble slip on global growth worries

* Rouble down, hit by late fall in oil prices

* MICEX down, hovers close to support level

* TNK-BP

shares up on possible dividends

By Maya Dyakina

MOSCOW, Oct 8 (Reuters) - Russian stocks fell on Monday and the rouble weakened, hurt by worries about the health of the global economy and lower commodity prices.

The rouble-traded MICEX index was down 0.7 percent to 1,468.01 at 0700 GMT, while the dollar-based RTS was off 1.0 percent to 1,492.53.

Shares of Russia's third-largest crude producer TNK-BP

were up 1.8 percent after its board of directors said on Friday it would discuss a possible dividend payout in the coming weeks.

"High beta" shares, which tend to outperform a rising market or underperform a falling one, led the retreat on Monday, with Russian steel and coal miner Mechel

and hydroelectric power producer RusHydro down 1.6 percent.

The key support level for MICEX stands at 1,465 points, Alor analyst Natalia Lesina wrote in a note.

Russian stock indexes followed a sell-off in Asian markets

, with investors concerned that China's slowdown could worsen, while the World Bank has cut its growth forecasts for the East Asia and Pacific region.

The World Bank report on Russia's economy is due later on Monday.

Local market players were also waiting for international reaction to the Eurogroup meeting in Luxembourg to give a clearer vision on the euro zone debt crisis.

"Whether Spain seeks a bailout remains one of the key questions on the agenda, as European finance ministers meet in Luxembourg today to discuss Spain," analysts at Urlasib bank wrote in a note.

Trading activity is expected to be lower on Monday, due to a public holiday in the United States

, with overnight rouble exchange operations shut down .

By 0700 GMT, the rouble had eased 0.6 percent to 31.06 against the dollar, taking its cues from the retreat in the global oil price - the main source of budget revenue for Russia.

The rouble also gave up 0.2 percent to 40.34 against the euro

and shed 0.4 percent against the euro-dollar currency basket .

Oil, Russia's chief export, fell 0.8 percent with Brent futures

trading slightly above $111 per barrel.

"Columbus Day holiday in U.S. may lead to a lower activity on Russia's forex market but will not result in a lower volatility," said Igor Akinshin, a trader at Alfa-bank.

Russian Markets Latest Net % % Change Change Change on year STOCKS MICEX 1468,01 -9,59 -0,65 4,69 RTS 1492,53 -16,19 -1,07 8,01 London ADRs

872,98 17,10 2,00 12,14

Emrg Mkt Indx

1001,14 -8,02 -0,79 9,25

MSCI Russia

799,29 -8,33 -1,03 8,49

Sberbank

92,46 -0,56 -0,60 17,25 VTB 0,05 -0,00 -0,73 -7,09 Gazprom 158,09 -0,98 -0,62 -7,71 LUKOIL 1925,10 -10,10 -0,52 13,07

Rostelecom

134,80 -0,40 -0,30 -11,32

Dollar/Rouble

31,06 0,19 0,62 -3,38

Euro/Rouble

40,34 0,07 0,17 -3,35

Rouble basket

35,24 0,14 0,39 -3,37 DEBT Bid Ask %Rtn Coupon Russia 10-yr bond 7,70 7,66 0,16 7,60 MONEY MARKET Bid Ask Close Overnight rate 5,34 5,84 5,00 TABLE FROM POWER PLUS PRO

All data taken from Reuters at 1004 GMT

(Additional reporting by Vladimir Abramov and Zlata Garasyuta; Editing by Hugh Lawson)

((+7 495 775 1242)(�))

Keywords: RUSSIA MARKETS/