Thursday, 6 November 2008

Irani negative on metal space

Mehraboon Irani, VP, PMS, Centrum Broking is negative on metal space.

Irani told CNBC-TV18, "We are passing through a bad phase as far as metals go, I have been negative on this sector. Even right now just because prices have come down and the balance sheets would be very healthy, I do not think I would venture out and go and buy the metal stocks now because we need to understand it is a complete slowdown all over the world. I think what ArcelorMittal announced yesterday is a clear indication of the fact that even corporate are accepting the facts. So cut in production definitely while it could be possibly a little bit healthy over a medium-term as far as the demand supply equation goes but for the time being I personally feel that there could be some more pressure on metal stocks because I think you cannot go away from the fact that there is a complete slowdown and it is going to affect this particular sector."

He further added, "We have seen a complete meltdown as far as prices go, I am not talking about the stock price, I am talking about the metal prices itself. I personally feel that this pressure on metal prices is going to continue. So I remain negative on the sector even at the moment while many would feel that otherwise the stocks would look attractive and there is nothing much to fall but that is not the way one should be looking at these stocks. The outlook is uncertain right now so I do not think I am tempted to buy into any metal stock even at the present levels."

Source: Moneycontrol

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.