By Anastasia Ustinova

Russia’s Micex Index of shares declined for a second day after Finance Minister Alexei Kudrin said the nation’s stock market is “overheated” and forecast oil prices will decline next year.

Gazprom Neft, the oil arm of Russia’s state natural-gas export monopoly, lost as much as 2.1 percent, while OAO GMK Norilsk Nickel fell 2.4 percent. The Micex Index slid 0.8 percent to 1,320.76 at 1:56 p.m. in Moscow as 26 of the 30 stocks on the gauge dropped, lagging a 0.6 percent gain in the MSCI Emerging-Markets index.

Kudrin warned investors against investing in domestic stocks, saying they’re overvalued because “speculative capital” has led to an “overheating” of the market. Oil may hover at $58 to $60 a barrel in 2010 and in 2011, he said.

“The lack of the positive news and Kudrin’s comments are dragging the market down,” said Mikhail Alefirenko, an analyst with Pharos Financial Group in Moscow.

The ruble-based Micex has more than doubled this year for the world’s best equity-market performance along with Russia’s dollar-denominated RTS Index as signs of global economic recovery sent Ural’s crude prices up 80 percent since December. Energy products make up about 70 percent of Russia’s export revenue.

Gazprom Neft, the oil arm of the country’s gas export monopoly, last traded 1.8 percent higher at 156.11 rubles. Crude oil rose from a five-week low in New York, gaining as much as 0.8 percent to $76.60 a barrel, as the dollar’s drop against higher-yielding currencies drew investors seeking an inflation hedge to commodities.

Retail Stocks

Norilsk Nickel, Russia’s largest mining company, fell 2.3 percent to 3,914 rubles, heading for a second day of losses. OAO Uralkali, Russia’s second-biggest potash producer, slid 1.4 percent to 134.26 rubles.

OAO Dixy Group, a Moscow-based food retailer, retreated as much as 1.3 percent to 220.02 rubles after saying its 10-month sales in dollar terms declined 14 percent to $1.37 billion. The stock last traded little changed at 223 rubles.

X5 Retail Group NV, Russia’s largest food retailer, rose 0.6 percent to 29.12 in London after the company said it will buy Paterson, a rival, for about $275 million, adding 82 outlets to its range of supermarkets and discount stores across the country.

The ruble slipped less than 0.1 percent to 28.7875 per dollar and weakened 0.6 percent to 43.3525 per euro.

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