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02 APRIL 2021 AL CIRCLE

ESG factors push Press Metal Aluminium in a better place

EDITED BY : RUPANKAR MAJUMDER 2MINS READ

Malaysian aluminium smelter, Press Metal has been adored by the investors as the metal producer focus on ESG practices, while the world’s largest glove producers, Top Glove topples due to environmental, social and governance (ESG) matters.

Press Metal Aluminium in a better place with ESG factors

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South-east Asia's biggest aluminium smelter gushed 18% in the March quarter to become the best performer on Malaysia's benchmark stock index.

The plants those runs on hydropower, it has been noticed that their shares have rallied amid higher prices of the metal and speculates that its products made with low carbon footprint will be in demand.

China is stressing to meet a goal of carbon neutrality by 2060, leaving aluminium producers that run on coal-fired power in the government's cross-hairs. Low Jin Wu, an analyst at Hong Leong Investment Bank, said in a report that the company’s hydro-run smelter means it uses renewable energy to produce the metal, which bodes well with ESG-centric clients.

Chua Zhu Lian, Investment Director at Fortress Capital Asset Management, said: "Press Metal tops when it comes to ESG because of their strategic decision to position themselves in Sarawak with rich hydro-power as their power backbone. There's a scarcity of low-carbon aluminium makers globally."

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Press Metal’s share prices have doubled from its October low to RM10.06. They rose 1.6% at the close on 01-04-2021. The company is now the eighth-biggest by market value in Malaysia's stock gauge, surpassing Top Glove.


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EDITED BY : RUPANKAR MAJUMDER 2MINS READ

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