Due to the increase in the price of aluminum which has reached its highest level in more than a decade, the share price of Press Metal Aluminum Holdings Bhd rose 5.3% to RM5.80 today.
As is well known, the spike in aluminum prices was triggered by the coup situation in Guinea where it is a major supplier of bauxite.
Bauxite is the main material used to make alumina which is subsequently processed into aluminum and Guinea has accounted for almost 50% of imports from China.
As of 4.35pm, Press Metal's share price has 'rocketed' 5.08% to RM5.79 with a market capitalization of RM46.68 billion.
Meanwhile, the aluminum futures price traded on the London Metal Exchange yesterday closed 1.37% at $ 2,764.51.
A military unit seized power in Guinea on Sunday and suspended the constitution and special forces chief Colonel Mamady Doumbouya urged the military to support it.
According to Bloomberg, despite the devastating political turmoil taking place it does not at all give the impression that shipments have been affected.
Meanwhile, Press Metal stated that the company's net profit had tripled to RM255.58 million in the second quarter from RM90.07 million.
The company's revenue also increased 52.22% to RM2.64 billion from RM1.73 billion last year.
The group explained that a second interim dividend of one sen per share will be paid on September 29.
