Russian Stocks Fall, Led by Lukoil as Profit Trails Estimates

By William Mauldin

Aug. 29 (Bloomberg) -- Russia's Micex Index fell for the first time in three days after OAO Lukoil reported earnings that trailed analysts' estimates.

Lukoil, Russia's second-biggest oil producer, lost 1.5 percent. OAO GMK Norilsk Nickel, the country's biggest mining company, dropped for the third time in four days.

The ruble-denominated Micex fell 1.4 percent to 1,345.96 at 10:56 a.m. in Moscow, extending its August retreat to 10 percent. The dollar-denominated RTS Index decreased 0.7 percent to 1,642.61, leaving it with a 16 percent loss so far this month.

Investors pushed the RTS to this quarter's steepest retreat among the world's biggest stock markets as Russia invaded Georgia, tumbling oil prices sent energy producers lower and the government probed steel producer OAO Mechel. Russia's decision to unilaterally recognize the independence of South Ossetia and Abkhazia this week drew condemnation from world leaders, with U.S. President George W. Bush asking Russian President Dmitry Medvedev to ``reconsider this irresponsible decision.''

Lukoil said net income rose 64 percent to $4.13 billion in the second quarter. That missed the $4.55 billion median estimate of eight analysts surveyed by Bloomberg News.

Lukoil shares fell 27.95 rubles, or 1.5 percent, to 1,852.68 rubles on the Micex Stock Exchange. Norilsk dropped 48.92 rubles, or 1 percent, to 4,880 rubles.

To contact the reporter on this story: William Mauldin in Moscow at wmauldin1@bloomberg.net.