Thursday 28 Mar 2024
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KUALA LUMPUR (May 19): Press Metal Bhd shares dropped 10 sen or 3.39% to RM2.85 this morning on the heels of a drop in prices of the aluminium futures contract as it is being weighed down by growing supplies.

At 12.30pm, a total of 3.18 million shares were traded. Press Metal (fundamental: 0.95; valuation: 2) shares reached a high of RM2.98 and a low of RM2.84.

Reuters reported today that metal prices are trading lower as the stronger US$ adds pressure on base metals.

The three-month future contract for aluminium traded at US$1,817 on Monday, the lowest since April 24.

It traded at US$1,820 compared to US$1,853 last Friday.

The current prices of aluminium are below producing costs outside China, which could persuade producers to slash capacity.

Reuters said ample supplies of aluminium can be seen in the contango, or discount, of US$36 a tonne for the cash contract over the three-month futures.

Press Metal runs an aluminium smelting and extrusion facility which produces ingots, billets as well as fabricated products like windows, doors, curtain wall cladding for high-rise buildings and apartments, among others.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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