Cia. Siderurgica Nacional SA (SID) rose the most among global steelmakers after profit exceeded analyst’s estimates and the the company denied making a binding offer for ThyssenKrupp’s CSA mill.
Shares of Brazil’s second-biggest steelmaker by market value, also known as CSN, jumped 5.6 percent to 9.64 reais at 12:52 p.m. in Sao Paulo, the biggest gain on Brazil’s benchmark Bovespa index and among global steelmakers with a market value of at least $1 billion.
Adjusted net income in the fourth quarter was 332 million reais ($164 million), according to data compiled by Bloomberg after the company released results on March 28. That compares with an average estimate of 183 million reais among seven analysts surveyed by Bloomberg. CSN executives in a conference call today forecast reductions in debt levels and further increases in Brazilian steel prices.
“The stock is reacting positively today because profit exceeded forecasts and the steelmaker denied an offer for CSA,” Pedro Galdi, chief analyst at Sao Paulo-based brokerage SLW Corretora, said in a phone interview.
David Salama, CSN’s head of investor relations, said on today’s call that “up until now the company hasn’t made a binding offer” for ThyssenKrupp’s CSA. Investors were concerned that buying the asset would push up CSN’s debt levels, Galdi said.
CSN shares fell 23 percent in the first quarter, three times the Bovespa’s 7.6 percent decline.
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