Evraz Group SA, OAO Magnitogorsk Iron & Steel and other Russian steelmakers surged in Moscow and London, buoyed by expectations for lower borrowing costs and after a record jump for rival OAO Mechel (MTLR) in New York.
Magnitogorsk, which operates Russia's biggest steel mill, rose as much as 16 percent, while London-traded Evraz, the country's biggest steel company by market value, surged by as much as 26 percent. Lipetsk-based OAO Novolipetsk Steel traded 15 percent higher.
``Longer term, commodities should be good, assuming the world's financial markets begin to function again,'' Michael Kavanagh, a metals analyst at Moscow-based UralSib Financial Corp., said today in an e-mail.
Money-market rates in London dropped after cash injections by central banks and the prospect of deeper reductions in borrowing costs worldwide. Global equity markets and commodities advanced.
VEB, Russia's state-owned development bank, said today it invested 20 billion rubles ($740 million) in shares and 5 billion rubles in bonds of Russian companies through local markets. Mechel rose 57 percent in New York yesterday.
Magnitogorsk advanced 0.572 rubles, or 12 percent, to 5.5 rubles on the Micex Stock Exchange in Moscow as of 3:52 p.m. local time. Novolipetsk gained 1.93 rubles, or 11 percent, to 19.3 rubles. Evraz gained $2.02, or 19 percent, to $12.40 in London trading. OAO Severstal, Russia's biggest steelmaker, rose 5.39 rubles, or 7.8 percent, to 74.50 rubles on the Micex.
To contact the reporters on this story: Yuriy Humber in Moscow at firstname.lastname@example.org
To contact the editor responsible for this story: Simon Casey at email@example.com