Posco Holdings Rallies Amid Bets on Steel-Demand Recovery
By Kwanwoo Jun
Posco Holdings Inc.'s shares rallied Monday amid growing bets on a recovery in steel demand and solid future growth in its battery-material business.
Shares of the South Korean steelmaking giant rose 7.85% to close at 398,500 won ($302.73), outperforming the benchmark Kospi's 0.9% increase.
The stock advanced in seven of the past 10 trading sessions, with retail investors remaining as net buyers for 15 straight sessions, according to Korea Exchange data.
The recent rally in Posco Holdings shares likely reflects growing market expectations that China's steel demand could rebound from the second half of 2023, Hyundai Motor Securities analyst H.W. Park said in a research note released Friday, citing a new order index for China's steel sector that rose in March to above 50% for the first time in 34 months.
The steel giant could also get a strong valuation boost from its ever- expanding battery-material business, including its lithium-supply affiliate, he said.
Hyundai Motor Securities maintained its buy rating and KRW470,000 target price on the stock.
The company is widely expected to return to a profit in the first quarter after a flood-damage recovery.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
April 10, 2023 05:09 ET (09:09 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.-
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