On Wednesday, SSTEEL’s share price gapped up by gaining 10.0sen (+9.09%). The underlying trend has been downwards since the start of a year 2014 due to uninspiring steel industry competitive landscape driven by Chinese's dumping of steel products. However, trends appear to have turned more positive with its MACD looking poised for a positive crossover the Signal line. Meanwhile, buying interest looked stronger than before with its momentum indicators rebounding from their oversold territories. We expect to see near term strength in SSTEEL’s share price, and it could test the RM1.29 (R1) level fairly soon.
Source: Kenanga
calvintaneng
Southern Steel?
Hong Leong Bank Quek Leng Chan wanted to privatise Southern Steel at RM2.10 some time ago. However, there was opposition and they bidded up Southern Steel to over RM2.20. So the privatisation failed.
A similar case is Perak Corp which was offered to take private at RM3.90 but substantial owners rejected it thinking it was still too cheap a price. So the deal was called off. Subsequently Perak Corp crashed more than 40% to RM2.20.
Coming back to Southern Steel. After the privaisation failed the price crashed by 50% from RM2.20 to RM1.10.
Reasons were due to China Steel dumping. Hopefully, with the help of Malaysian Govt putting a restriction on cheap steel imports from China plus the impending implemention of massive public construction works the fortunes of Southern Steel will turn for the better.
Apart from Prestar, Southern Steel are the 2 steel companies that give good dividends year in and year out
Southern Steel is also one of 3 Long Steel makers apart from Masteel & Ann Joo Steel. With the Construction of Highways, More Highrise Condos, MRT & Bullet Train the demand for Long Steel will Surge further.
2015-01-02 09:33