0223 GMT - Press Metal Aluminium's earnings could be weighed by the dollar's weakness against the ringgit, as aluminum trade is primarily dollar-denominated, RHB IB analyst Cindy Lee says in a note. She estimates a 1% change in USD/MYR could impact Press Metal's profit by 1.8%-2%. She notes the dollar may weaken as RHB economists forecast 100 bps of Fed rate cuts in 2024 and another 100 bps in 2025, along with no changes to Malaysia's policy rate. However, rising LME aluminum prices and higher U.S. tariffs on Chinese aluminum could partly offset the impact, she adds. A weaker dollar, higher alumina costs and a fire at a plant in September could lead to softer 3Q earnings for Press Metal, she adds. RHB cuts Press Metal's target price to MYR6.30 from MYR6.53, and maintains a buy rating on the stock. Shares are 0.6% lower at MYR4.94. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
October 02, 2024 22:23 ET (02:23 GMT)
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