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.”
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