Press Metal under selling pressure as technical outlook weakens (update)


  • Markets
  • Friday, 24 Apr 2015

KUALA LUMPUR: The shares and warrants of Press Metal skidded on Friday on selling pressure as the technical outlook weakened.


At 10.13am, PMetal was down 32 sen to RM2.92, Petal-WC fell 23 sen to RM1.83, PMetal-CJ 9.5 sen to 10.5 sen, PMetal-CG 8.5 sen to 14 sen and PMetal-CA 8 sen to 28.5c

The FBM KLCI was up 13.02 points or 0.71% to 1,859.10. Turnover was 595.95 million shares valued at RM425.27mil. There were 309 gainers, 222 losers and 272 counters unchanged.

Kenanga Investment Bank Research, in its technical analysis, said PMetal dropped 11.0 sen or 3.28% to close at RM3.24 on Thursday, settling below the 20-day simple moving average (SMA) line. 

“Recall that we have revised our TP to RM3.73 based on ‘Symmetrical Triangle’ measurement objective. However, the share price experienced heavy profit taking and broke below its key support-turned-resistance level of RM3.31 (as well as its 50-day SMA level). 

“Technically, the chart has turned less compelling with all the indicators moving south. This prompt us to take a more conservative route by locking in our gains (37% return within four-months period), despite the share price did not meet out stop-loss level of RM3.20. We might revisit the stock when the share price technical picture becomes more attractive again,” it said.

Bloomberg reported China, the world’s largest aluminum producer, may worsen a global glut of the metal as the government scrapped export duties for some products.

The removal of fees to ship certain aluminum products may encourage further exports from the country that accounts for about half the world’s production. Global prices may sink as the move encourages producers to shift China’s aluminum glut overseas, according to Bloomberg Intelligence.

“The policy will improve China’s aluminum market by encouraging exports and reducing domestic oversupply, but will increase global aluminum supply,” said Ma Kai, a Beijing-based analyst at China International Capital Corp. “Overseas aluminum premiums will be damped, while rising Chinese exports will also have a negative impact on LME aluminum prices.”

Bloomberg reported China, the world’s largest aluminum producer, may worsen a global glut of the metal as the government scrapped export duties for some products.

The removal of fees to ship certain aluminum products may encourage further exports from the country that accounts for about half the world’s production. Global prices may sink as the move encourages producers to shift China’s aluminum glut overseas, according to Bloomberg Intelligence.

“The policy will improve China’s aluminum market by encouraging exports and reducing domestic oversupply, but will increase global aluminum supply,” said Ma Kai, a Beijing-based analyst at China International Capital Corp. “Overseas aluminum premiums will be damped, while rising Chinese exports will also have a negative impact on LME aluminum prices.”


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