Metal Stocks Outlook for the Week - 20 to 24.06.2016
Likely to track broader
market next week
( www.rupeedesk.in )
Stocks of major metal and
mining companies are seen tracking the broader market next week, ahead of Thursday's referendum
in Britain's on whether to stay in or leave European Union. Investors may avoid riskier assets
ahead of the referendum, which may weigh on metal prices and broader equities. Investors would be eyeing
stocks of Tata Steel Ltd as the planned sale of its Port Talbot plant at Wales has been delayed
after the steelmaker asked the potential buyers for more details on their roadmap for the site. The
delay implies the final decision on the fate of the plant that employs around 4,000 workers
would not be taken until July.
According to reports,
Tata Steel, the company is exploring reversal of a decision to sell its UK business due to pressure
from the referendum-bound UK government. The UK government is said to believe that Tata Steel's
exit will reflect badly on the country's business environment. However, sale of the UK business is
essential for Tata Steel to trim losses and cut debt. On the technical front, metal stocks are likely
to trade with a positive bias and are likely to witness a bounce back. However, the referendum in the UK
would be keenly watched.
