Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 1): Shares of Press Metal Aluminium Holdings Bhd rose as much as 7.45% today to continue rising after closing at its all-time high yesterday at RM4.43, on the possible inclusion of the stock in the components of FBM KLCI.

As of 10.42am today, the share price rose 7% or 31 sen to RM4.74 after 5.03 million shares were traded, which brings the market capitalisation to RM16.59 billion.

RHB Research Institute analyst Muhammad Syafiq Mohd Salam raised his target price for Press Metal by 39% from RM3.80 to RM5.30.

"With the recent uptrend of its share price, Press Metal's market capitalisation is now in excess of RM16 billion. With the company's market capitalisation now ranked as 24th among FBM KLCI constituents, we believe the stock could be included in the index at the end of this year," he said.

Syafiq added that the recent rise in aluminium prices could also serve at Press Metal's advantage.

"Although management has taken up a hedging policy up to 1H18, the recent run-up in aluminium prices has opened up opportunities for management to hedge at much higher aluminium prices for 2H18 and beyond," he said.

 

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