Rusal’s Hong Kong listed stock sinks as US plans to slap fresh round of sanctions on Russia
Shares of Russian company, which produces about 7 per cent of the world’s aluminium, has lost 70 per cent of its value in last 10 trading sessions
Rusal, the world’s second largest aluminium producer, plummeted30 per cent in Hong Kong to a new low, adding to the 56 per cent plunge last week, following news that the Trump administration on Monday plans to impose a new round of sanctions on Russia for supporting Syria.
The US had, earlier this month, already targeted Russian companies and business allies of President Vladimir Putin, including Rusal’s majority owner Oleg Deripaska, for interfering in the 2016 US elections.
Shares in Rusal, which produces about 7 per cent of the world’s aluminium, closed down 30 per cent at HK$1.42, with about 306 million shares worth HK$490 million (US$62.4 million) changing hands.
The Russian firm has plunged 70 per cent in the past 10 trading sessions, after the US imposed wide-ranging vast sanctions, hitting the value of some Russian assets.
Meanwhile, aluminium prices posted its biggest weekly gain on the London Metal Exchange, rising 12 per cent last week on expectations that global supply will tighten.
“Unquestionably, the sanctions will lead to major disruptions to aluminium physical trade flows in the short term,” said Simona Gambarini, commodities economist at Capital Economics, in a recent note.
