Raspadskaya Falls 1st Day in 3 on UBS Cut as Output Declines

OAO Raspadskaya retreated for the first time in three days as UBS AG cut the Russian coal producer to neutral after production fell.

Raspadskaya declined 2.7 percent to 82.26 rubles by the close in Moscow, while the benchmark Micex Index added 0.6 percent.

UBS analysts led by Kirill Chuyko cited “lower production, declining prices for coking coal and higher costs in the near term” as reasons for the downgrade from a buy recommendation, according to an e-mailed note today.

Coal output dropped 1 percent to 3.4 million tons in the first half of the year from the same period a year earlier, the company said in a statement on July 11.

To contact the reporter 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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.