Magnitogorsk Heads for Highest in Month After Worst 2011 Decline
OAO Magnitogorsk Iron & Steel, which sank the most among Russian steelmakers last year, headed for its strongest level in more than a month as investors bet losses were overdone.
The shares jumped as much as 2.3 percent and traded up 0.7 percent at 13.65 rubles as of 1:14 p.m. in Moscow, poised for their best close since Dec. 8. Magnitogorsk sank 62 percent in 2011, while OAO Severstal (CHMF) and OAO Novolipetsk Steel (NLMK) dropped 27 percent and 55 percent, respectively. Magnitogorsk has gained 11 percent so far this year.
“Magnitogorsk lost more than any other Russian steelmaker last year,” George Buzhenitsa, an analyst at Deutsche Bank AG said by phone today. “Now its value seems to start recovering.”
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