Oct. 11 (Bloomberg) -- Evraz Plc, Russia’s largest steelmaker, fell for the first time in five days and the most in a week, as Renaissance Capital said a rally for producers is overdone.
Evraz declined 1.5 percent to 128.90 pence by the close in London, the biggest drop since Oct. 1. The amount of shares traded was equivalent to about 27 percent of the three-month average. OAO Severstal, the nation’s second-largest producer of the alloy, lost 0.3 percent to $8.875 and added 0.4 percent to 287.10 rubles in Moscow. Evraz has gained 37 percent since the start of August, while Severstal’s Moscow shares have risen 16 percent in the same period.
RenCap named the companies its “least favored” and predicted a “short-term downward correction” in the next 30 to 45 days, according to an e-mailed note today. Steel stocks may see a stronger selloff if concern about the pace of global growth increases, RenCap said.
“We saw quite strong growth in metal producers’ shares, however it was unfounded because commodity prices remained unchanged,” Vasiliy Kuligin, a RenCap analyst in Moscow, said by phone. “Soon we may see a correction.”
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