OAO GMK Norilsk Nickel (NILSY:US) headed to the highest closing price in a week in U.S. trading after billionaire Alisher Usmanov said he is buying shares in the company, world’s largest producer of nickel and palladium.
Norilsk rose 2.2 percent to $17.73 at 1:39 p.m. in New York, gaining the most since April 19 and heading to the highest price since April 20 on a closing basis. It was the second- biggest gainer on the Bloomberg Russia-US 14 index of Russian companies listed in the U.S. today, after Yandex NV. (YNDX:US)
Usmanov, who controls Metalloinvest (METIN), said in an interview with Rossiya-24 state television today that he is increasing the iron-ore producer’s stake in Norilsk Nickel (MNOD), Russia’s largest mining company.
“The news on Usmanov is definitely a positive as accumulation of stock by existing shareholders and potential further buybacks are two strong supporting factors for the stock,” Yan Gloukhovski, a trader at Alfa Capital Markets in London, said by e-mail today.
Alfa, Russia’s biggest private lender, recommends investors hold Norilsk shares traded on Moscow’s Micex Index. Norilsk rose 2 percent to 5,189 rubles, or the equivalent of $177, in Moscow today, rising for the first time this week and settling at the highest level since April 20. Ten ADRs equal one ordinary share.
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