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Nov. 30 (Bloomberg) -- OAO Mechel, Russia’s largest coal producer for steelmakers, surged the most in a month in New York as European central banks took actions to ease the region’s debt crisis, boosting the outlook for importers.
American depositary receipts of Mechel rose 10 percent to $10.65 at 11:21 a.m. in New York, the biggest intraday advance since Oct. 27. In Moscow, shares jumped 10 percent to 328.10 rubles, or the equivalent of $10.69.
The U.S. Federal Reserve and five other central banks including the European Central Bank agreed to reduce the interest rate on dollar liquidity swap lines in an effort to prevent the euro zone’s credit crisis from threatening global growth. Europe accounted for 19 percent of Mechel’s 2010 sales while Asia represented 13 percent.
“Mechel has been a very volatile stock,” said George Buzhenitsa, analyst at Deutsche Bank AG in Moscow, in a phone interview. “It’s a strong day for the entire steel space in Russia because of news out of Europe.”
Mechel’s ADRs had fallen 72 percent from a 2011 peak on Feb. 1 to yesterday. Buzhenitsa rates Mechel a “hold” with a 12-month price target of $16.
--Editors: Marie-France Han, Glenn J. Kalinoski
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