Norilsk Rises Most in Week in U.S. as Usmanov Increases Stake

OAO GMK Norilsk Nickel (NILSY) 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)

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.

To contact the reporter on this story: Halia Pavliva in New York at hpavliva@bloomberg.net

To contact the editor responsible for this story: Emma O’Brien at Eobrien6@bloomberg.net