Friday 29 Mar 2024
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KUALA LUMPUR (Aug 9): Steel counters on Bursa Malaysia are having a good run today as Chinese steel prices hit their highest level since 2013 on expectations of reduced supply in the winter on the back of Beijing-imposed capacity curbs.

Ann Joo Resources Bhd's share price rose 3.6% to RM3.15 with 592,700 units traded. Similarly, Southern Steel Bhd, Mycron Steel Bhd, and Melewar Industrial Group Bhd gained by 4.7%, 5.2% and 7.0% respectively. CSC Steel Holdings Bhd and YKGI Holdings Bhd, however, fell by 0.6% and 4.9% respectively.

Aluminium players Press Metal Aluminium Holdings Bhd and Aluminium Company of Malaysia Bhd also gained by 10.2% and 5.9% respectively.

Lee Yen Ling, an analyst with Maybank Investment Bank, told theedgemarkets.com that the buying interest could be due to the uptrend seen in steel prices, which appear to have bottomed out in May.

"For Ann Joo, we should see breakout above RM3.10 with near-term resistance at RM3.35 to RM3.50 while support level is at the range of RM2.95-RM3.00," said Loui Low Ley Yee, head of retail research at Hong Leong Investment Bank.

"Southern Steel could see breakout with a continuation rally above RM1.76. Next resistance is at RM1.93 to RM2.00 and support is seen at RM1.66 to RM1.70 level," he said.

Turning to Mycron, Low said the counter saw a recovery from a downtrend position after surging above 78.5 sen. Price may revisit 85.5 sen to 87.5 sen range while support will be set around 75 sen to 76 sen level, he said.

"Melewar also rebounded off 28 sen and breakout is seen above 29 sen. Target of technical rebound stood at 31.5 to 33 sen. Support will be set around 27 sen," Low added.

 

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