Uralkali Drops to 19-Month Low as Buyback Winds Up: Moscow Mover

OAO Uralkali fell to the lowest level since December 2011 as the world’s largest potash producer by output neared the end of a $1.6 billion buyback.

The shares retreated as much as 7.5 percent, trading down 5.1 percent at 202.07 rubles by 2:11 p.m. in Moscow. The amount of shares traded was equivalent to about 120 percent of the three-month average. Uralkali tumbled 5 percent to $31.20 in London.

The company said yesterday it bought back about $1.3 billion of shares as part of its buyback program. In November, the company approved a one-year $1.6 billion share buyback after the stock declined.

“The buyback was offering strong support,” Elena Sadovskaya, an analyst at Rye, Man & Gor Securities, said by phone from Moscow. “There are fears that since we’re nearing the limit of the buyback amount, the stock may fall a lot.”

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

To contact the editor responsible for this story: Wojciech Moskwa at wmoskwa@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.