Polyus Gold International Ltd. jumped the most in a month in New York after Russia’s biggest gold producer agreed to sell shares to a Chinese sovereign wealth fund and VTB Group before seeking a full London stock listing.
American depositary receipts of Polyus climbed 4.1 percent in U.S. trading yesterday, the biggest gainer on the Bloomberg Russia-US Equity Index. The gauge, which tracks the most-traded Russian companies in the U.S., added 0.5 percent to 103.31. Search engine Yandex NV slipped, bringing its decline last month to the most since November, after its share of Internet searches dropped. Markets in Moscow resume trading tomorrow after closing yesterday and today for holidays.
A subsidiary of the gold mining company agreed to sell 151.6 million shares to CIC International Co.’s Chengdong Investment Corp. unit, and 50.2 million shares and 25.2 million depositary receipts to VTB, Russia’s second-biggest lender, according to a statement issued yesterday. Polyus, which has previously lobbied Russia’s government to redomicile in London, also said it is applying for a premium listing on the city’s stock exchange.
“This is positive for the stock. These are high-profile organizations who are buying the shares,” Ilya Kravets, a research analyst at ED Capital in New York, which manages almost $100 million in assets including Russian equities, said by phone. “Others may be buying already because those big names are buying.”
ADRs of Polyus jumped to $3.08 in New York yesterday, the highest level since March 15. The shares added 1 percent last month.
Widen Investor Base
Polyus general depositary receipts gained 4 percent in London to $3.10 yesterday, the highest level since March 19. The GDRs gained 0.6 percent in April, bringing this year’s gain to 3.3 percent.
Polyus, controlled by billionaires Suleiman Kerimov and Russian presidential contender Mikhail Prokhorov, is seeking to widen its investor base, said Marco Casas, vice president at Otkritie Financial Corp. in New York. CIC’s stake in Polyus represents 5 percent minus one share of the company’s issued share capital, while VTB’s stake in Polyus is 2.5 percent.
“A premium listing will help them try to get included into FTSE 100 and attract a wider pool of investors, as investors will start to consider Polyus as a gold producer with assets in Russia, not a Russian gold mining company,” Valentina Bogomolova, an analyst at UralSib Financial Corp. in Moscow, said by e-mail yesterday.
Polyus had withdrawn its application to Russia’s foreign investment commission to establish the company’s legal permanent residence in London, Sergey Lavrinenko, a spokesman for the company, said on March 19. The mining company switched its domicile from Russia to the island of Jersey last year.
Yandex NV, Russia’s most-used search engine, was the biggest decliner on the Russia-US gauge in April, dropping 12 percent to $23.72 yesterday.
The Hague, Netherlands-based company’s share of Russia’s online search market fell to a preliminary 60.2 percent in April compared with 64.7 percent in April 2011, data compiled by Liveinternet.ru show. The share of Google Inc. and Mail.ru Group Ltd., Russia’s biggest Internet company, climbed over the same period.
Yandex fell 3.9 percent yesterday in New York. The stock’s monthly drop in April was the steepest since November, data compiled by Bloomberg show. The Bloomberg Russia-US index fell 3.7 percent, dropping for a second consecutive month.
The Market Vectors Russia ETF, a U.S.-traded fund that holds Russian shares, rose 0.2 percent to $29.95 yesterday, curbing its 3 percent slump in the month.
Urals Monthly Decline
Crude oil for June delivery was little changed at $104.87 a barrel on the New York Mercantile Exchange yesterday. Prices climbed 1.8 percent last month and are up 6.1 percent in 2012. Oil prices fell after data showed Spain’s economy contracted in the first quarter, putting the country into its second recession since 2009 and strengthening concern that fuel demand may decline as a global slowdown intensifies.
Brent oil for June settlement slipped 0.3 percent to $119.47 on the London-based ICE Futures Europe exchange yesterday. Brent posted its first monthly drop since December.
Urals crude, Russia’s main export blend, was little changed at $117.23 yesterday, falling for the first time in four days. Urals dropped 2 percent in April, its second monthly decline.