Steel stocks make firm recovery in early trade

Steel stocks make firm recovery in early trade

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KUALA LUMPUR (March 6): Shares in steel and aluminium-related counters staged a recovery this morning after sliding sharply on Monday.

Stocks of most steel and aluminium companies tumbled yesterday, as concerns grew over the impact of potential new US tariffs on steel and aluminium imports from the rest of the world.

The Edge Financial Daily today reported that analysts saw the selling pressure as a knee-jerk reaction to the negative global sentiment, adding that the stocks would soon bounce back.

AmInvestment Bank Bhd Research in a note this morning said the Trump administration has thus far faced tremendous backlash on these proposed steel and aluminium tariffs and that it is premature to conclude that these are a done deal.

“As such, we maintain our steel and aluminium price assumptions of RM2,140/tonne and US$2,150/tonne in 2018 and Overweight rating on the Building Material sector,” it said.

Among the stocks that rose today at 9.20am were Malaysia Steel Works (KL) Bhd that rose 7% or 7 sen to RM1.07, Press Metal Aluminium Holdings Bhd up 4.22% or 21 sen to RM5.18, Ann Joo Resources up 3.61% or 12 sen to RM3.44 while Southern Steel Bhd added 4.57% or 9 sen to RM2.06.

Meanwhile, CSC Steel Holdings Bhd gained 2.86% or 4 sen to RM1.44 and Mycron Steel Bhd added 1.07% or 0.5 sen to 47 sen.