adminPARIS. — Shares in steelmaking giant ArcelorMittal fell sharply in morning trading yesterday, in response to cautious broker comment from Morgan Stanley bank.The price of shares in ArcelorMittal, the biggest steelmaker in the world, was showing a fall of 3,51 percent to 9,82 euros.
The overall Paris market as measured by the CAC 40 index was down 1,47 percent.
Under-represented
Morgan Stanley analysts issued a note to investors advising that they adjust their portfolios to be under-represented, or under weight, in ArcelorMittal shares, rather than being neutral as they had recommended previously.
They said that the market had priced into the shares a recovery which was unlikely to occur, noting that they were being traded at a price 20 percent higher than the lowest price reached in July.
Meanwhile, shares in stainless steel-maker Aperam fell by 3,96 percent to 10,43 euros.
Downgraded
On August 1, ArcelorMittal reported a first-half loss of US$1,2 billion and downgraded its target for underlying profit for the whole year, but said it expected an improvement in the second half of the year.
Steelmakers are big users of raw materials, notably iron ore, and in London yesterday the price of shares across the mining sector was sharply down as Switzerland-based giant Glencore Xstrata reported a big first-half loss. – AFP.
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