Traders saw potential in the Norilsk Nickel papers and actively bought the company’s shares on Friday, November 11 at the Moscow Exchange. Quotes increased by +4.14% to 14,626 rubles per share.
Shares rose in price against the backdrop of rising prices for nickel and copper, as well as after positive statistics on inflation in the US. “This is a reaction to yesterday’s inflation sprint in the US. Given that lower inflation translates into a slower pace of interest rate hikes by the Fed, this means the dollar is weakening at the moment. And the weakening of the dollar is a signal for rising prices for precious metals, such as gold and palladium,” commented Kirill Komarov, an analyst at Tinkoff Investments, and added that he still sees no reason to rush to buy shares because of a possible recession.
Inspiring inflation statistics increase the likelihood that the Fed will ease policy and support economic activity and demand for non-ferrous metals, experts at BCS World of Investments say. “Medium-term expectations for Norilsk Nickel shares are moderately positive. The company in 2022 suffered from logistical difficulties, the strengthening of the ruble, however, these factors are already largely included in the price of securities. A strong driver for quotes could be the devaluation of the ruble. At the same time, due to the expiration of the shareholder agreement, there is increased uncertainty about Norilsk Nickel’s dividends for the coming years,” the analysts added.
The Moscow Exchange Index by the end rose by +0.34% to 2217.44 points. The RTS index rose by +0.69% to 1158.24 points. As of 19:46 Moscow time, Brent crude stood at $95.78 per barrel (+2.25%). The Russian currency weakened – 60.53 rubles. per dollar.