
_0_0.jpg)
Stock image for referential purposes only
Press Metal Aluminium Holdings Bhd (KL: PMETAL) shares fell 6 per cent on Thursday as aluminium prices extended their decline following easing geopolitical tensions in West Asia, reducing concerns over disruptions to global commodity supplies.
{alcircleadd}Benchmark three-month aluminium futures on the London Metal Exchange dropped to USD 3,122.50 per tonne, their lowest level since February, after the announcement of the reopening of the Strait of Hormuz boosted expectations of normalised shipping activity and uninterrupted supplies of the lightweight metal to global markets.
Press Metal's share price closely tracks movements in aluminium prices because of the company's direct exposure to the commodity, said Malacca Securities Head of Research Loui Low, describing the correlation as "very sensitive".
To know about the safety and productivity of autonomous furnace tending in aluminium cast houses, join our upcoming webinar here.
Southeast Asia's largest integrated aluminium producer fell by as much as 57 sen, or nearly 7 per cent, during intraday trading. The stock closed at MYR 7.79, down 6 per cent, weighing on Malaysia's benchmark FBM KLCI, which declined 18 points, or more than 1 per cent.
The decline in aluminium prices comes after the market rallied sharply in recent weeks on fears that escalating tensions in West Asia could disrupt shipping through the Strait of Hormuz, a critical maritime route for energy commodities and industrial raw materials. With trade flows expected to normalise, risk premiums built into aluminium prices have begun to unwind.
Higher aluminium prices earlier in the year helped Press Metal deliver its strongest quarterly performance on record. For the first quarter ended March 31, 2026 (1QFY2026), the company posted a net profit of MYR 624.5 million on revenue of MYR 4.1 billion.
To explore the market dynamics, emerging applications and future outlook for aluminium extrusions, download the TOC of The World of Aluminium Extrusions – Industry Forecast to 2032.
Despite Thursday's sell-off, Press Metal shares remain nearly 10 per cent higher than their level at the end of February, when the Iran-Israel conflict intensified and aluminium prices surged on supply concerns.
Analyst sentiment, however, has turned more balanced as aluminium prices retreat. According to Bloomberg data, the stock currently carries eight "buy" recommendations and five "hold" ratings, with no "sell" calls. The consensus 12-month target price stands at MYR 9.94.
Responses







