Mondi Ltd. shares rallied a sixth day to an all-time high after a jump in first-quarter profit bolstered investors’ expectations for the rest of the year.
The largest producer of kraft paper and industrial bags in Europe said on May 13 earnings rose 29 percent as sales volumes advanced and input costs declined. The company is focused on growing its packaging business, Chief Executive Officer David Hathorn said.
The performance “implied that only 1 percent growth was required in the remainder of the year to meet full-year consensus expectations,” David O’Brien, paper and packaging analyst at Dublin-based Goodbody, said by phone from the Irish capital. “Management have really delivered quite a stellar performance.”
Mondi’s shares gained as much as 2.3 percent before trading 1.3 percent stronger at 279.09 rand by 2:43 p.m. in Johannesburg. The 14-day relative strength index climbed to 79.2, the highest since August 2013 and above the 70 level which signals to some technical analysts that the stock may be overbought.