KUALA LUMPUR (June 25): Press Metal Aluminium Holdings Bhd (KL:PMETAL) sank in active trade on Thursday as commodity prices declined further with easing tensions in West Asia.

Prices of aluminium have tumbled to a three-month low as the reopening of the Strait of Hormuz boosted prospects for resumption in shipments of the lightweight metal. Share prices of Press Metal closely track that of the underlying commodity, said Malacca Securities head of research Loui Low.

The correlation is “very sensitive”, he noted.

Press Metal, Southeast Asia’s biggest aluminium producer, fell as much as 57 sen or nearly 7%. The stock ended Thursday at RM7.79, still down 6%, and dragged on the country’s benchmark index with the FBM KLCI down 18 points or over 1%.

The benchmark three-month aluminium futures contract on the London Metal Exchange was down to US$3,122.50 per tonne — the lowest since February.

The company enjoyed higher aluminium prices that lifted its earnings to a record RM624.5 million on revenue of RM4.1 billion in the first quarter ended March 31, 2026 (1QFY2026).

Press Metal is still up close to 10% from the end of February when the Iran war broke out.

However, analysts tracked by Bloomberg are now divided over prospects of further upside, with eight “buy” and five “hold” ratings. There are no “sell” calls. The 12-month average target price is RM9.94.