Key Moments
- Press Metal Aluminium Holdings Bhd (KL: PMETAL) fell 6 per cent to close at MYR 7.79 as aluminum prices extended their pullback.
- Benchmark three-month aluminum futures on the London Metal Exchange dropped to USD 3,122.50 per tonne, the lowest since February.
- Despite the sell-off, Press Metal shares remain nearly 10 per cent above their end-February level, while analysts maintain a consensus target price of MYR 9.94.
Aluminum Price Retreat Hits Press Metal Stock
Press Metal Aluminium Holdings Bhd (KL: PMETAL) came under pressure on Thursday, with its share price dropping 6 per cent as aluminum prices continued to weaken following signs of easing geopolitical risk in West Asia. The shift in sentiment reduced worries about potential interruptions to global commodity flows.
On the London Metal Exchange, benchmark three-month aluminum futures fell to USD 3,122.50 per tonne, marking their lowest level since February. The decline followed news of the reopening of the Strait of Hormuz, which strengthened expectations that shipping conditions and supply routes for aluminum and other commodities would return to more normal patterns.
Tight Correlation Between Press Metal and Aluminum Prices
The movement in Press Metal’s share price has been closely aligned with changes in aluminum prices, reflecting the company’s direct commodity exposure. Malacca Securities Head of Research Loui Low described the linkage as “very sensitive”, underscoring how fluctuations in the underlying metal quickly feed through to the stock.
Southeast Asia’s largest integrated aluminum producer experienced pronounced intraday volatility, falling by as much as 57 sen, or nearly 7 per cent, at one point during the session. The stock eventually settled at MYR 7.79, down 6 per cent on the day. The decline weighed on Malaysia’s benchmark FBM KLCI, which finished 18 points lower, a drop of more than 1 per cent.
From Geopolitical Premium to Price Normalization
The current pullback comes after a sharp run-up in aluminum prices in recent weeks, driven by concerns that rising tensions in West Asia could disrupt traffic through the Strait of Hormuz. The waterway is a key channel for energy products and industrial raw materials, and the earlier uncertainty had added a risk premium to aluminum prices. With trade routes now expected to normalize, that premium has started to unwind.
Strong Quarter Supported by Earlier Price Strength
Earlier gains in aluminum prices this year translated into robust financial results for Press Metal. For the first quarter ended March 31, 2026 (1QFY2026), the company reported a net profit of MYR 624.5 million on revenue of MYR 4.1 billion, its strongest quarterly performance on record.
| Period / Metric | Value |
|---|---|
| Press Metal closing price (Thursday) | MYR 7.79 |
| Intraday decline | As much as 57 sen (nearly 7 per cent) |
| Daily performance | -6 per cent |
| LME 3-month aluminum | USD 3,122.50 per tonne |
| 1QFY2026 revenue | MYR 4.1 billion |
| 1QFY2026 net profit | MYR 624.5 million |
| Consensus 12-month target price | MYR 9.94 |
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Share Performance and Analyst Positioning
Even after Thursday’s drop, Press Metal shares remain nearly 10 per cent higher than at the end of February, when the Iran-Israel conflict intensified and aluminum prices spiked on supply fears.
Analyst views have become more measured as aluminum prices ease. According to Bloomberg data, the stock is currently rated with eight “buy” calls and five “hold” recommendations, with no “sell” ratings. The consensus 12-month target price stands at MYR 9.94.
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