KUALA LUMPUR: Shares of Press Metal Aluminium Holdings Bhd jumped more than eight per cent on Monday, on news that China will end incentives for aluminium product exports.
The stock jumped as high as RM4.78 a share in the morning session before settling up 35 sen or 7.95 per cent to RM4.75, giving it a market capitalisation of RM39.14 billion.
This marks its largest single-day gain since April 4, 2024.
The jump in share price comes after China's Ministry of Finance announced on Friday that it would reduce or cancel export tax rebates for a wide range of commodities and products, effective Dec 1, 2024.
According to a report by Reuters, the export tax rebate rate for some refined oil products, photovoltaics, batteries, and certain non-metallic mineral products will be reduced from 13 per cent to nine per cent.
Additionally, the rebate will be entirely removed for aluminium and copper products, as well as for chemically modified animal, plant, or microbial oils and fats.
The announcement also sparked a rally in aluminium prices on the London Metal Exchange, as traders anticipated the policy might curb the heavy outflow of Chinese aluminium into global markets.