Press Metal falls after rising on dividend

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KUALA LUMPUR (Aug 16): Press Metal Aluminium Holdings Bhd shares fell 14 sen or 3% on profit taking amid broader market losses.

At 11:18am, Press Metal was traded at RM4.65 with some one million shares traded.

Investors took profit after the stock rose to its highest so far today at RM4.88 and as the broader market fell. The FBM KLCI fell 7.54 points to 1,778.40.

Press Metal shares rose earlier today after the company declared a dividend of 1.5 sen a share yesterday. The group also said second quarter net profit climbed to RM160.6 million from RM150.17 million a year earlier. Press Metal said first half (1H18) net profit was higher at RM311.08 million compared to RM298.22 million a year earlier.

Today, RHB Research Institute Sdn Bhd wrote in a note: "Press Metal's reported 1H18 net profit of RM311.1 million (+4.3% year-on-year) was within our and market expectations. This was mainly due to higher aluminium prices, but offset by a stronger ringgit as well as higher alumina prices."

RHB said it maintained its 'buy' rating on Press Metal shares with an unchanged target price of RM5.60.