Jan. 26 (Bloomberg) -- United Co. Rusal rose to a two-month high in Moscow trading as the U.S. Federal Reserve signaled plans to maintain near-zero interest rates through 2014, boosting demand for riskier assets such as commodities.
Rusal, the world’s largest aluminum producer by output, rallied as much as 4.4 percent to 236 rubles and traded 4 percent up at 235.12 rubles at 1:29 p.m., the strongest intraday level since Nov. 21. In Hong Kong, the stock advanced the most since Feb. 14 on a closing basis, adding 7.8 percent to HK$6.07, paring its drop in the past 12 months to 49 percent.
The Fed said yesterday it sees “exceptionally low” interest rates through 2014, having previously pledged to refrain from raising borrowing costs until at least the middle of 2013. Policy makers maintained the benchmark rate at 0.2 5 percent. The LME Index of the six main industrial metals rallied for a third day, adding 0.7 percent to 2,689.6, the highest since Sept. 20.
“The U.S. rate decision late yesterday marked a possible start of the new round of quantitative easing, which may lead to a weaker dollar and higher dollar prices for commodities, including aluminum,” said Dmitry Kolomytsyn, analyst at Morgan Stanley in Moscow. “In Hong Kong trading, a three-day break for the Chinese New Year contributed to a surge in Rusal shares.”
--Editors: Ana Monteiro, Linda Shen
To contact the reporter on this story: Ilya Khrennikov in Moscow at firstname.lastname@example.org
To contact the editor responsible for this story: John Viljoen at email@example.com