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Thursday, March 17, 2011

Steel Shares Profited from Rising Demands

VIVAnews - The Indonesia share prices may still be affected by the Japan earthquake and tsunami. However, the disaster can boost demands in steel in pursuit of infrastructure development.

Research analyst of PT Woori Korindo Securities Indonesia, Teuku Hendry Andrean, said the tsunami aftermath and nuclear crisis in Japan as well as heating political conflicts in Middle East and Africa, which cause oil prices to go in flux, still upset regional and domestic markets.

Nonetheless, he acknowledged that the tsunami disaster in Japan will bring positive sentiment over various shares in the domestic stock market like Krakatau Steel Tbk, Jaya Pari Steel, and Charoen Pokphand Indonesia Tbk.

"Krakatau Steel and Jaya Pari are benefited from the crisis because demands on steel are expected to rise from Japan," he said.

Dadan S, an analyst at Madani Securities, said the high metal prices and issuers' financial reports of 2011 fiscal year are still put into consideration by market players.

A figure has it that steel prices this year will increase due to doubling of prices on iron ores and powder. World Steel Dynamics projected that average steel prices within the next six months to reach US$850 per ton, a 37 percent increase compared to last year.

In the mean time, as most share prices dropped, steel prices improved.

KRAS-coded shares were most traded at 4,943 times. The shares gained Rp10 (0.86 percent) at Rp1,160.

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