No quick recovery for metallurgical enterprises’ stocks, FINAM says

31 July 2008 (10:22)

‘The downfall of Mechel’s shares last Friday led to a decrease in the share price of many other mining and metallurgical enterprises; however, things have been gradually getting back on track over the last two days. I feel the initial panic has by now been succeeded by a somewhat more level-headed risk assessment,’ FINAM Investment Company’s analyst Alexei Sulinov said to UrBC.

‘We expect the investors to slowly grow interested in the metallurgical sector’s securities again, but no quick recovery can be hoped for. I believe the country’s leading steel manufacturers and coal companies have the best growth potential as far as the third quarter of this year is concerned,’ Sulinov added.

‘My advice to investors is: don’t panic. The Russian market is strong enough fundamentally, so long-term investments might actually yield some nice profit despite the current fluctuations,’ he remarked.

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