Russian ADRs Take Off (MTL)(LUKOY)
Tickerspy’s Russian Stock and ADR Index is up close to 5% as the market goes into its close. Among the biggest movers was LUKOIL (OTC: LUKOY), an oil and gas company that was up over 6.5% today. Mechel OAO (NYSE: MTL), a mining company, was also up over 6.5%.
Russian oil and mining stocks were up today largely due to the effects of this weekend’s G-20 meetings, where world leaders agreed to continue their fiscal and monetary stimulus until global economic recovery. This news gave investors confidence that there will be demand for industrial commodities in the coming quarters. This has had the effect of pushing up the value of Russia’s ruble again the dollar, along with Russia MICEX index, as oil and metals mining represent a significant portion of that country’s economy.
Garrett W. McIntyre