Mechel Jumps to Week-High as UBS Forecasts Rally on Coal

OAO Mechel (MTLR) climbed to the strongest level in more than a week after UBS AG (UBSN) removed Russia’s biggest producer of coking-coal from its least-preferred stocks list, citing potential for a rally should prices increase.

Mechel added 0.4 percent to 206.30 rubles by the close in Moscow, the highest since June 21. Mechel has slumped 24 percent this year.

“Any positive coal price movement could trigger a stock rally,” UBS analysts led by Kirill Chuyko, said in an e-mailed research note.

To contact the reporters on this story: Ksenia Galouchko in Moscow at kgalouchko1@bloomberg.net;

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

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