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Russian Stocks advanced, Led by Norilsk Nickel on Mine Expansion |
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Russian stocks advanced, led by OAO GMK Norilsk Nickel after Russia's biggest mining company announced a plan to quadruple nickel production at a mine in South Africa.
The ruble-denominated Micex Index gained 1.3 percent to 1,725.82 at 12:42 p.m. in Moscow. The dollar-denominated RTS Index added 0.9 percent to 2,026.68.
Norilsk Nickel rose 2 percent to 6,295 rubles on the Micex Stock Exchange. The company said it would work with African Rainbow Minerals Ltd. to quadruple nickel production at the Nkomati mine in South Africa to 20,500 metric tons a year.
Norilsk acquired half of Nkomati on the completion of its $6.4 billion takeover of Canada's LionOre Mining International Ltd. in August. Any additional nickel production beyond what was advertised during the LionOre acquisition would boost the value of Norilsk shares, according to Alexander Pukhaev, a metals and mining analyst at Deutsche Bank AG in Moscow.
"It would be very positive" for the stock, Pukhaev wrote today in an e-mail message.
Russian oil and gas stocks advanced after crude futures climbed for the first time in four days. Crude for November delivery gained 29 cents, or 0.4 percent, to $79.82 a barrel in after-hours electronic trading on the New York Mercantile Exchange.
OAO Lukoil, Russia's second-biggest oil producer, rose 1.3 percent to 2,021.10 rubles. The Micex Oil & Gas Index advanced 1.5 percent.
OAO Tatneft, the oil producer in Russia's republic of Tatarstan, climbed 2.3 percent to 137 rubles. The stock has gained 4.4 percent since Interfax reported that the company had chosen Royal Dutch Shell Plc as a partner to help it extract crude from bitumen deposits. back to the News |
