LONDON (Bloomberg) — Bermuda-based Aquarius Platinum Ltd., a producer of the metal in Africa, rose the most in a week in London trading as Liberum Capital Ltd. said precious metals stocks are undervalued.

Aquarius jumped as much as 7.1 percent on the London Stock Exchange, the biggest gain among the 16 companies tracked by the FTSE 350 Mining Index.

"The safest part of the FTSE mining sector in the short term is likely to be the unloved precious metals stocks," Michael Rawlinson, head of mining, resources and energy at Liberum in London, wrote yesterday in a report. Aquarius is "too cheap" and there may be forthcoming merger and acquisition news, he said.

Russian gold producer Peter Hambro Mining Plc and silver producer Fresnillo Plc are also likely to increase, he said.