OAO GMK Norilsk Nickel rose to the highest level in a week in U.S. trading after billionaire Alisher Usmanov said he is buying shares in the company, the world’s largest producer of nickel and palladium.
American depositary receipts of Norilsk gained 2.2 percent to $17.72 in New York, the strongest price since April 20. The stock was the second-biggest gainer on the Bloomberg Russia-US Equity Index of the most-traded Russian companies listed in the U.S., after Yandex NV.
Usmanov, who controls OAO Metalloinvest and is Russia’s richest man, said in an interview with Rossiya-24 state television that he is increasing the iron-ore producer’s stake in Norilsk Nickel, 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. Ten ADRs equal one ordinary share.