Bloomberg News

Russian Stocks: Mechel, Norilsk, Polyus, Raspadskaya, VTB

October 20, 2009

Russia’s 30-stock Micex Index (INDEXCF) fell 0.3 percent closing at 1,361.75, after rallying 3.7 percent yesterday. The dollar-denominated RTS Index added 0.9 percent and closed at 1,446.14.

OAO Mechel (MTLR) gained for a fifth day, climbing 2.1 percent to 516.61 rubles at closure on the Micex. Russia’s biggest producer of coal used in steel making had its price estimate upgraded to $25 (730 rubles) from $22 at UBS AG on the outlook for earnings.

OAO GMK Norilsk Nickel (GMKN RX) advanced 1.3 percent to 4,163.20 rubles as copper rose in New York and London. Nickel also climbed as the dollar continued to fall against the euro.

OAO Polyus Gold (PLZL LI): Russia’s largest gold producer rose 3.8 percent to $29.60, the highest since June 2008, in London trading after gold gained for the third day in New York and ING Groep NV initiated coverage with “buy” recommendation and price estimate of $31. Polyus’ Micex-traded shares rose 2.5 percent to 1,717.30 rubles.

OAO Raspadskaya (RASP) , Russia’s second-largest producer of coal used for steelmaking, rose for a second day, adding 1.2 percent to $4.30 on the RTS after UBS AG raised its price estimate 14 percent to $5 on stronger domestic prices and favorable coal outlook.

OAO Rosneft (ROSN RX), Russia’s largest oil company, fell 1.1 percent to 245.68 rubles. OAO Lukoil (LKOH RX), the second- biggest, lost 1.3 percent to 1,923.23 rubles. Oil dropped 0.9 percent to $78.87 a barrel at the close of equity trading in Moscow.

OAO Rostelecom (RTKM RX), the nation’s long-distance phone operator, fell 6 percent to 185.14 rubles. Chief Executive Officer Anton Kolpakov said the company’s board last month reduced the sales forecast for this year, Kommersant reported, citing an interview with Kolpakov.

OAO Uralkali (URKA) , Russia’s second-largest potash producer, gained for the third day, climbing 4.4 percent to $23.91 in London. BofA Merrill Lynch Global Research raised its price estimate to $24 from $21 as “political risks” resulting from the flooding of one of its mines disappeared. The new price estimate “limited upside” for the stock, the bank wrote in the report, setting its recommendation at “neutral” from “buy” earlier. The shares rose 3.9 percent to 139.45 rubles at on the Micex.

OAO VTB Group (VTBR RX), , Russia’s second biggest bank, fell 1.4 percent to 6.54 kopeks before the company reports earnings tomorrow. VTB’s second-quarter results will probably “remain weak,” with the company reporting its fourth quarterly loss in a row, Renaissance Capital wrote in a report today. The brokerage predicted a loss of 16.3 billion rubles ($558 million) for the quarter.

To contact the reporter on this story: Ilya Khrennikov in Moscow ikhrennikov@bloomberg.net Maria Kolesnikova in Moscow at mkolesnikova@bloomberg.net,

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net


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