UPDATE 1-Russian shares hurt by growth worries, IPOs


* Rouble steady on oil, tax payments

* Stocks down, steelmakers underperform

(Updates prices, adds details and comments)

By Maya Dyakina and Zlata Garasyuta

MOSCOW, Oct 12 (Reuters) - Russian stocks ended the week in the red withminers pressured by concerns over the global economic outlook and as investorsstocked up with cash ahead of public share offerings.

The rouble was steady, underpinned by upcoming monthly tax payments.

At 1348 GMT, the dollar-traded RTS index

shed 1.4 percent to 1,469points and the rouble-based MICEXwas fell 1.4 percent to 1,442 points,leaving it down 2 percent on the week.

Metal and mining companies were in the firing line, with Novolipetsk Steel

down 3 percent and MMK

off 3 percent. Coal miner Raspadskaya

lost 2.3 percent, hurt by weak third quarter earnings.

"Shares of steelmakers are the main outsiders. Realising that one can hardlyexpect a recovery in global demand, investors are continuing to sell theshares," said Alexei Golovtsov, the head of the analytical department at UralsibCapital.

Global demand for steel will slow next year because of weaker consumptiongrowth in China and uncertainties from the European debt crisis, according to areport by the World Steel Association.


shares, which fell 1.2 percent, have lost 4 percent in thelast four days, underperforming the market on speculation of major selling by acompany owned by Russian tycoon Suleiman Kerimov.

"There are rumors that it has sold already two thirds of his speculativeposition (in the stock)," a dealer at a Russian investment bank said.

Alexei Bachurin, a senior trader at Renaissance capital, said Gazprom hadlagged the market and became attractive for speculators when the United Statesannounced a new bond-buying programme. but there was no substantial upturn inthe price, disappointing some investors.

Share trading volumes were on the low side this week, with market playerspreparing for an expected $2 billion IPO by telecommunications company Megafon.

"Maybe, the trading is so light because of upcoming offerings (IPOs). It wasa tough week for brokers," said Andrey Yarnyh, a trader at UBS.

But oil prices remained supportive of Russia's commodity-heavy bourse,hovering above $115 per barrel of Brent

on tensions between Turkey andSyria.

The rouble firmed in early trading but then steadied against the dollar at30.99

and was marginally higher at 40.21 against the euro

and at 35.14 against its dollar-euro basket, which the centralbank uses as guidance for the rouble's nominal rate


"Upcoming tax payments will support the rouble, but any disappointment ofinvestors may break the current trend," analysts at ING bank wrote in a note.

The rouble and the Mexican peso

remain the most attractive currenciesfor global investors, said Mikhail Paley, a trader at VTB Capital.

Goldman Sachs analysts see the rouble steady at 31.0 against the dollar inthree months, supported by a higher current account surplus, expectations ofanother interest rate hike and the liberalisation of the local debt market.

Russia's local debt market remains attractive for foreign investors, with thespread on six-year OFZ treasury bonds over Russia's rouble Eurobond maturing in2018

narrowing further to 65 basis points.

"Non-residents' interest in the local market continues to rise ahead ofaccess being granted via Euroclear, supporting interest in swapping expensiverouble Eurobonds in favor of the locally-traded OFZs, which carry a superioryield," analysts at Sberbank investment research wrote in a note.

Russian Markets Latest Net % Change % ChangeChange on yearSTOCKSMICEX

1442,00 -21,12 -1,44 2,84


1469,56 -20,85 -1,40 6,35

London ADRs

846,33 -11,32 -1,32 8,72

Emrg Mkt Indx

997,03 1,08 0,11 8,80

MSCI Russia

785,02 -10,32 -1,30 6,55


91,42 -1,23 -1,33 15,93VTB0,05 -0,00 -1,32 -8,35Gazprom151,60 -2,65 -1,72 -11,50LUKOIL1922,10 -19,10 -0,98 12,90Rostelecom

131,92 -3,05 -2,26 -13,21


30,99 -0,02 -0,06 -3,60


40,21 -0,01 -0,03 -3,66

Rouble basket

35,14 -0,02 -0,04 -3,63

DEBT Bid Ask %Rtn CouponRussia 10-yr bond8,98 7,41 -7,62 7,60MONEY MARKET Bid Ask CloseOvernight rate6,15 6,65 6,30


All data taken from Reuters at 1348 GMT

(Reporting by Maya Dyakina and Zlata Garasyuta; Editing by John Stonestreet)

((maya.dyakina@thomsonreuters.com)(Tel: +7 495 775 1242))