[miningmx.com] – SHARES in ArcelorMittal South Africa (Amsa) drove upwards again on the JSE this week taking gains since November 20 some 18%, a development described by a spokesperson as “just paying catch-up” as the stock had been oversold.
Shares in Amsa closed nearly 6.5% higher on the JSE on November 26 and closed at R31.94/share. On November 20, the share was trading at about R27/share.
“I think it’s just a question of playing catch up with the rest of the JSE,” a spokesperson said. “It had been heavily sold,” he said. Shares in Amsa had halved in the last 12 months as demand for steel fell away globally.
However, Business Times, a weekly newspaper, reported on November 25 that Amsa was about to enter a phase of restructuring following the appointment of Matthias Wellhausen who would replace Rudolph Torlage as the company’s chief financial officer. Torlage would focus on strategic projects.
Quoting a company insider, Business Times said:”People are not buying steel. We need to cut costs to the point where we can ensure the company will survive.’
“Wellhausen will have to focus on reducing costs,’ Mohamed Kharva, an analyst at Nedgroup Securities told Business Times in the same article.
