Angang Rises Most in Three Month on Earnings: Hong Kong Mover
Angang Steel Co. (347) rose the most in three months in Hong Kong trading after the city’s largest publicly traded steelmaker said it returned to profit in the first-half.
Angang surged as much as 8.7 percent, the biggest gain since April 2, to HK$4.24 and traded at HK$4.18 at 11:48 a.m. local time. In Shenzhen, the stock rose 3.8 percent to 2.74 yuan.
Anshan, Liaoning province-based Angang posted a profit of 702 million yuan ($114 million) for the six months ended June 30, compared with a loss of 1.98 billion yuan a year ago, according to preliminary figures it released after the close of market on July 12. Steel rebar prices in Shanghai today headed for the highest close since April 19 amid speculation China may continue its development of railway construction to absorb some overcapacity in the steel and cement industries.
It’s the first profit Angang has reported in two years, according to data compiled by Bloomberg, as a global economic slowdown and China’s campaign to rein in the property market curbed steel demand. Angang last year joined larger competitor Baoshan Iron & Steel Co. in selling unprofitable assets.
Steel rebar futures for January delivery on the Shanghai Futures Exchange today rose for a fourth day, up 0.5 percent to 3,673 yuan a ton by the 11:30 a.m local time break. China’s steel output, at a four-month low in June, is set to rebound with higher prices, Custeel.com analyst Hu Yanping said today.
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