KUALA LUMPUR (Jan 5): Press Metal Aluminium Holdings Bhd shares rose as much as 3.58% in active trade this morning, following a positive outlook on the potential upside of aluminium prices. 

As at 11:20am, Press Metal shares were traded up 2.83% or 15 sen at RM5.45, with 4.08 million shares done. 

RHB Research Institute analyst Muhammad Syafiq bin Mohd Salam said in a note today that aluminium prices have rebounded to hover above US$2,200.00 per tonne, after a temporary blip in early Dec 2017. 

"We still see potential upside on the aluminium prices, as currently half of the smelters in China are still loss-making from rising energy costs, due to higher coal prices," he said. 

Muhammad Syafiq added demand and supply of aluminium is expected to be slightly tilted towards a deficit for this year, as China continues to impose restrictions on industrial output to reduce smog pollution.

RHB Research has maintained its "Buy" call for Press Metal with a higher target price of RM5.95 (from RM5.30), as it is positive on the company's future growth on the back of a brighter outlook for alumunium prices.