Steel stocks jump as government proposes duty on rebar imports

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KUALA LUMPUR (Sept 26): Steel counters listed on Bursa Malaysia jumped this morning after the Federal Government issued provisional safeguard measures regarding rebar imports into Malaysia. 

It was reported that Putrajaya is planning to impose a duty rate of 13.9% and 13.4% on steel coils and reinforced bars respectively and the final determination is scheduled to be made within approximately six months starting from Sept 26 this year. 

At 10.18am, Malaysia Steel Works (KL) Bhd led the steel stock gainers by rising 13.5 sen or 15.05% to trade at RM1.03, with 16.47 million shares changed hands. 

This was followed by Southern Steel Bhd's 12 sen or 9.35% gained to settle at RM1.40, with 1.75 million shares done.

Melewar Industrial Group Bhd was traded at 63.5 sen rose 5.5 sen or 9.48%. Trading volume was 13.93 million shares. 

Kinsteel Bhd up two sen or 36.36% at 7.5 sen, while Tatt Giap Group Bhd and Perwaja Holdings Bhd climbed 1.5 seb and one sen respectively. 

Kenanga IB Research has upgraded Ann Joo Resources Bhd to “Outperform” with a higher target price of RM2.24 (from RM1.69) and said that last week, the Federal Government issued provisional safeguard measures for steel coils and reinforced bars at a duty rate of 13.9% and 13.4% imposed respectively towards exporting countries into Malaysian shores.

Ann Joo Resources Bhd, meanwhile climbed nine sen or 4.33% to trade at RM2.17, with 2 million shares changed hands between RM2.09 and RM2.18. 

Kenanga Research said in a note today that the proposed duty was positive on the measure as it would boost Ann Joo’s steel re-bars average selling prices (ASPs).