STEEL SECTOR
ArcelorMittal SA’s efforts to return to profitability cheer investors
Steelmaker ArcelorMittal SA’s (Amsa’s) share price surged by up to 22% in early trade on Tuesday as investors appeared to be buying into the company’s efforts to return to profitability. Since the beginning of August the share price has gained more than 60%. The uptick in the share comes after the group last week reported its first interim profit in six years in the six months to June, largely due to strong global demand, higher international steel prices, reduced costs and a weaker rand-dollar exchange rate during the latter part of the six months. The company’s return to profitability and its improved outlook, despite dim prospects in the domestic market due to subdued economic growth, have caught the eye of investors who are banking on the company’s growth prospects, Stephen Meintjes, head of research at Momentum Securities, said.
"We are seeing early-bird investors who entertain hopes of a change in the company’s … prospects," Meintjes said. Amsa said last week it was taki...
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