Metal Stocks Outlook for the week – 10 to 14.07.2017
Metal Stocks Outlook for the week – 10 to 14.07.2017
( www.rupeedesk.in )
Expectation of robust Apr-Jun earnings and strength on technical charts will help shares of metal
and mining companies maintain their positive momentum next week. In the first quarter of the current financial year, ferrous companies are expected to see earnings growth on better spreads, while those in the non-ferrous space are expected to benefit from volume growth and steady prices on the London Metal Exchange. Capacity ramp up is expected to yield further benefits for Vedanta, Tata Steel and Hindustan Zinc as a result, we expect these companies to post EBITDA (earnings before interest, tax, depreciation and amortisation) growth in excess of 50%. Earnings of mining companies are, however, expected to be subdued as international coal and iron ore prices remain under pressure.
The rise in share prices of these stocks was also boosted by better-than-expected manufacturing data in China for June, which suggested that economic growth was steady in the world's largest consumer of metals. The Caixin manufacturing purchasing managers' index for the previous month came in at 50.4, above economists' forecast of 49.5.
Source : Cogencis Information Services Ltd.
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Metal Stocks Outlook for the week – 10 to 14.07.2017
( www.rupeedesk.in )
Expectation of robust Apr-Jun earnings and strength on technical charts will help shares of metal
and mining companies maintain their positive momentum next week. In the first quarter of the current financial year, ferrous companies are expected to see earnings growth on better spreads, while those in the non-ferrous space are expected to benefit from volume growth and steady prices on the London Metal Exchange. Capacity ramp up is expected to yield further benefits for Vedanta, Tata Steel and Hindustan Zinc as a result, we expect these companies to post EBITDA (earnings before interest, tax, depreciation and amortisation) growth in excess of 50%. Earnings of mining companies are, however, expected to be subdued as international coal and iron ore prices remain under pressure.
The rise in share prices of these stocks was also boosted by better-than-expected manufacturing data in China for June, which suggested that economic growth was steady in the world's largest consumer of metals. The Caixin manufacturing purchasing managers' index for the previous month came in at 50.4, above economists' forecast of 49.5.
Source : Cogencis Information Services Ltd.
