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A record collapse: shares of En+ and RusAl are becoming worthless in front of the eyes

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A record collapse: shares of En+ and RusAl are becoming worthless in front of the eyes
April 09
09:00 2018

Today, on April 9, the market is experiencing a catastrophic stock price decline of RusAl and En+. The reason is obvious – the inclusion of these companies and their shareholders in the sanctions list prepared by the US Treasury.

Since the beginning of today’s trading session, shares of aluminum giant “RusAl” (traded on the Moscow Stock Exchange) have fallen to the level of 15.04 rubles per share. Thus, the fall has totaled 46.9%. Securities of the company En+ have lost 22.8% in the price; currently, the shares are being traded at the price of 45 rubles per unit.

We recall that last Friday OFAC, the US department of the Treasury (responsible for the application of sanctions in the United States), published updated sanctions lists. A Russian oligarch Oleg Deripaska and his companies “RusAl” and En+ got in these lists. Viktor Vekselberg, another major Russian entrepreneur associated with the company “RusAl”, was in the “black list” too.

The press service of the aluminum giant said that sanctions could lead to defaults with regard to a whole range of credit obligations of the company. Representatives of the holding stressed that “RusAl” was planning to fulfill its obligations to the maximum. Nevertheless, both the company representatives and independent experts believe that getting “RusAl” into the blacklist will have an extremely negative impact on the current state of affairs in the company and the development of the company in the future.

The press release was published at the time of a sharp collapse of quotations. For example, on the stock exchange in Hong Kong, securities fell in price by 40%. The minimum price to which the company’s shares fell during the trading session on the Hong Kong stock exchange was equal to HK$ 2.76 per share.

At the moment, the stakes in “RusAl” and En+ are considered the main assets of Oleg Deripaska. It is known that the Russian oligarch owns about 66% of En+ and 48% of RusAl. Viktor Vekselberg controls about 26.5% of the aluminum giant. Traders continue to monitor the situation around companies that have got into the “black list” of the US Treasury. Experts believe that after the catastrophic fall, a significant correction should be expected.



The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade

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