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Sinosteel may invest in Pakistan Steel Mills

The Daily Times reported that a delegation of the Sinosteel on Wednesday called on Federal Minister for Industries and Production Ghulam Murtaza Khan Jatoi here and discussed about investment opportunities in Pakistan.

Sinosteel is the China’s second largest importer of iron ore and one of the leading metallurgists of the country. The delegation briefed the minister of Sinosteel’s specialisation in energy, infrastructure and mining projects. They said that 60% of their operations were within China and they were looking to expand their overseas operations further with Pakistan as a consistent partner in international cooperation.

Currently, the Chinese company operates in India, Turkey, Iran, Australia, Canada and Nigeria. The delegation said that Sinosteel’s production capacity has exceeded demand and proposed initiatives for revamping, modernisation and expansion of the existing plants and operations of the Pakistan Steel Mill. The minister extended his full support and assured the delegation that they can discuss all possible options of Pakistan’s cooperation with Sinosteel once the company has chalked out proposals in detail.

Furthermore, the minister appraised the delegation that as the Privatisation Commission was working on privatising the Pakistan Steel Mills, the ministry would have to discuss all proposals with them and together they can come up with feasible options which will benefit both Pakistan and the Chinese company – Sinosteel.

The minister suggested the delegation to visit the Pakistan Steel Mills and its facilities so they can get a better understanding of the viable options for future cooperation. He also recommended joint proposals as possibilities for the cooperation.

Source : The Daily Times
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Beijing to shut steel mills ahead of military parade

Steel mills in Beijing and neighbouring regions will be shut down or reduce production starting in late August to guarantee quality air for the military parade marking the 70th anniversary of the end of the second world war on September 3.

The parade will include army, navy, air and missile forces and will showcase indigenous weaponry, some never before seen in public

Current and former world leaders, monarchs and other dignitaries have been invited to the parade through Tiananmen Square on Sept 3. Some countries have also been asked to contribute troops to the parade—75 each for major world power and three to seven troops for smaller countries.

Source : China Daily
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Ahmsa slips into the red as steel prices fall

BNAmericas reported that Mexican steelmaker Ahmsa recorded a net loss of 1.29bn pesos (US$79.7mn) in Q2, compared to net earnings of 673mn pesos a year before. Ahmsa's loss increased from 584mn pesos in Q1.

The loss was a result of a 35% decline in steel prices in the period, resulting from a sharp rise in dumping by steel producers in Asia – notably China and India – and Eastern Europe, the company said, without giving steel price or import figures.

Revenue declined to 10.3bn pesos from 11.0bn, while cost of sales increased to 10.9bn from 10.2bn. Production volumes remained flat, the company added.

Ahmsa received an income tax credit of 468mn pesos, compared to 317mn income tax paid in the prior year quarter.

The loss came despite cost reductions including a 13% fall in fixed costs, the company said, without giving further details.

The steelmaker previously announced a 20% cut in production and its workforce and a freeze on investment as a result of rising Chinese dumping in the country.

Steel associations across Latin America have called on governments to take steps to address the threat from Chinese overcapacity and subsidized steel production.

Source : BNAmericas
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Mooi logo! :-)

JSW Steel posts Q1 loss of INR 107 crores as steel prices fall

The country’s largest private sector integrated steel producer by volume, Sajjan Jindal-led JSW Steel on Wednesday posted its first consolidated quarterly loss in seven quarters, on the back of sharp fall in steel prices and a flood of cheap imports of the alloy into the country. The company reported a consolidated net loss of INR 106. 81 crores in the April-June quarter against a net profit of INR 656.49 crore in the same period last year.

Net sales value were down to INR 11,382 crore during the reporting quarter from Rs 13,067 crore a year ago, reflecting the current trend of subdued price and lower realisation even as sales volume went up by 8% to 3.11 million tonnes. Total expenses were less at INR 10,887 crore in the reporting quarter from INR 11,438 crore a year earlier. Tax outgo also came down to INR 16.61 crore from INR 382.75 crore in April-June of last fiscal. Exports took a beating while domestic sales volume grew by 27% to 2.66 million tonnes. Sales of flat products grew by a meagre 4%, but long products, used in the construction sector, rose by 32%.

It said “The Indian steel industry continues to suffer from a surge in imports at a price which is significantly lower than domestic prices in exporting countries – especially from China, Korea and Japan; consumption of domestically produced steel was down by 0.4% y-o-y as total steel imports were up by 57% y-o-y. The elevated level of steel imports has resulted in excess availability of steel and an inventory build-up across the system is causing injury to the domestic steel industry.”

Though the government has recently raised import duty on steel products by 2.5%, mainly to protect the domestic industry, JSW Steel expects more from it. It said “Several countries have initiated tariff/non-tariff barriers to arrest dumping of steel in their markets. It is expected the government of India shall act expeditiously to stop further damage from dumping to the domestic industry.”

It added “In India, overall activity levels show a modest pick-up. Industrial production growth continues, albeit at a slow pace. Public spending on the infrastructure segments seems to be picking up; however, the momentum needs to be sustained in the coming quarters for an actual uptick in investment cycle.”

Source : Financial Express
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US Steel to idle Fairfield blast furnace in mid-August

WBRC reported that there are growing concerns for jobs at US Steel at the Fairfield Works as US Steel President and CEO said they will idle its blast furnace in mid-August during a conference call for shareholders. The company's new electric furnace should make it more competitive, more efficient and take fewer people to run it.

People at the Local 1013 Steel Union Hall in Fairfield they had little comment on Wednesday. Several members attended a meeting at the building on Tuesday. Business owners in downtown Fairfield are also concerned.

"The downtown businesses I look for it to hurt the business because if we lose those customers from U.S. Steel it will hurt Fairfield," said Robert Levert with Levert, Levert and Associates, an accounting business in Fairfield.

The Alabama Department of Economic and Community Affairs has an emergency response team to be ready to move to come to Jefferson County to assist with unemployment and benefits issues.

Downtown businesses owners say they hope some jobs can be saved.

In June the company put 1,900 employees on a federal WARN list notice that they could be laid off.

Source : WBRC
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Nippon Steel & Sumitomo Metal to cut crude steel output by 6% in July-Sept quarter

Reuters reported that Japan's top steelmaker Nippon Steel & Sumitomo Metal Corp plans to cut crude steel output in the July-September quarter by 690,000 tonnes or 6 percent from a year earlier as it struggles to bring down inventories. Nippon Steel slashed its crude steel output for the April-June quarter by nearly 9 percent from a year earlier to 10.3 million tonnes.

Nippon Steel's EVP Mr Katsuhiko Ota told a news conference on Wednesday "Inventory adjustment is taking longer than expected. But it will end in the summer. "We aim to maintain 10.9 million tonnes of steel output in the third and fourth quarters. We'll make an effort to bring our second-half output to near the 22 million tonnes of the same period a year earlier.”

The drop to 10.9 million tonnes is in line with the 6.1 percent fall forecast by the industry ministry in Japan's total crude steel output for the period, which would take it to the lowest level for the quarter in six years.

Steel product inventories at major Japanese wholesalers have been hovering at high levels because of a drop in automobile production and slack housing starts, both hit by a sales tax rise in April last year.

Source : Reuters
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FMG chairman Mr Forrest says iron ore forecasts by analysts are unreliable

Bloomberg reported that Fortescue Metals Group chairman Mr Andrew Forrest has taken aim at commodity forecasters. He said "People who try and make a living out of predicting commodity prices have a really short life expectancy. Commodity forecasts are unreliable.”

He said "We’ll continue to ensure that Fortescue Metals Group is in the bottom 10% decile of operating costs in the world, so that no matter what happens Fortescue will stay an extremely competitive and strong company.”

Goldman Sachs and Citigroup are among banks forecasting further losses for iron ore.

Bloomberg
www.bdlive.co.za/world/asia/2015/07/2...

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www.smh.com.au/content/dam/images/g/h...

Supreme Court rejects 39 review petitions by Karnataka miners

Financial Express reported that the Supreme Court on Wednesday rejected a batch of petitions, including one by the Federation of Indian Mineral Industries, seeking to review its own 2013 verdict where it had scrapped 51 iron ore mines in Bellary, Tumkur and Chitradurga districts of Karnataka due to gross irregularities.

While rejecting a batch of 39 review petitions filed by various Category C mining companies, the bench of the apex court led by justice Ranjan Gogoi said that it found “no compelling reasons” to review its April 18, 2013 that allowed some mines to resume functioning, while cancelling the leases of several others.

The petitions had sought a review on four grounds — a survey conducted by a central empowered committee (CEC) impacted individual cases; there was violation of the principle of natural justice; the apex court exceeded powers under Article 32; and there was no objective assessment of the mines, and the SC, while cancelling their licenses, took upon itself the powers of legislature.

In April 2013, the apex court had scrapped mining in 51 mines where the highest amount of irregularities was found. These mines were categorized as Category C mines. Category A and B iron ore mines, with no or lesser degree of irregularities, were allowed to resume mining subject to reclamation, rehabilitation and compensation payments. The CEC in its January report had recommended the grant of approval to the Karnataka government’s proposed scheme of e-auction and re-allotment of 51 cancelled mines in Category C.

The apex court will now on Thursday hear another batch of petitions seeking the review of several aspects of its April 18, 2013 order, by which Category A and B mines were allowed to resume mining with a cap of 30 mtpa. It had banned the mining of iron ore in Karnataka in July 2011, following allegations of illegal mining that had resulted in the large scale abuse of the environment. Subsequently, the court ordered a resumption in mining activities in Karnataka in April 2013 with a cap on production of 30 mtpa after July 2011.

Source : Financial Express

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NRW Holdings bags mining contract for Nammuldi iron ore mine of Rio Tinto

The West Australian reported that NRW Holdings has won a $140 million iron ore mining contract with Rio Tinto. The move will see Rio Tinto increase production at its Nammuldi mine in the Pilbara. The two year job follows NRW completing below water table works for Rio at Nammuldi earlier this month.

NRW will provide mining and ore haulage services, with a peak workforce of 135. The contract includes supply and installation of two crushing plants with a capacity of 5 million tonnes per annum each.

The contractor said the project would utilize its existing equipment, including two excavators and up to 14 dump trucks.

Work begins next month.

NRW CEO Mr Jules Pemberton said “It’s pleasing to be awarded a significant contract during challenging times for the industry and continue a long association with Rio Tinto in the Pilbara.”

Source : The West Australian
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Analysts see iron ore stocks at China ports building pushing price down

Bloomberg reported that Clarksons Platou Securities Inc, the world’s largest shipbroker, said that holdings will probably extend a rebound from a 19-month low as supply rises and prices may slump to USD 35 a tonne in the second half.

Jeremy Sussman, a New York-based analyst at Clarksons, said by e-mail “With our view that Chinese steel production will end the year down year-on-year, it has to go somewhere and port stocks are the logical place.”

The port inventories contracted from a record 113.7 million tons in July 2014 to a low of 79.4 million tons in June after four quarterly declines, according to weekly data compiled by Shanghai Steelhome Information Technology Co. The 21 percent drop in the three months to June helped prices rally 16 percent.

Australia & New Zealand Banking Group Ltd said “Inventories, at 82.5 million tons last week, may climb to 95 million tons by September. The principal reason for the port-stockpile buildup is a slowdown in China’s steel demand. Activity will remain weak for the next two months, driving port stockpiles higher.”

Goldman Sachs sees iron ore dropping for the next four quarters and recently said “Stock levels may start to grow modestly in the months ahead as supply growth accelerates once again but, in a buyers’ market, this is likely to come at the expense of further price declines.”

Steel output in China fell 1.3 percent in the first half after peaking last year, according to the China Iron & Steel Association and apparent consumption dropped 4.7 percent in the first six months of 2015

Source : Bloomberg
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ArcelorMittal hogere nettowinst ondanks dalende prijzen staal en ijzererts

Door Levien de Feijter

Van DOW JONES NIEUWSDIENST


AMSTERDAM (Dow Jones)--Staalbedrijf ArcelorMittal (MT.AE) heeft in het tweede kwartaal een hogere nettowinst behaald ondanks de aanhoudende daling van prijzen voor ijzererts en staal.

Het concern handhaaft zijn jaarverwachtingen voor een operationele winst (EBITDA) van $6,0 miljard tot $7,0 miljard in 2015 en investeringen ter hoogte van $3 miljard. Ook blijft het grootste staalbedrijf ter wereld rekenen op een positieve kasstroom dit jaar.

De nettowinst steeg naar $179 miljoen van $52 miljoen in het tweede kwartaal van 2014. Het EBITDA resultaat daalde tot $1,4 miljard van $1,8 miljard. In Europa steeg de operationele winst echter met 10,5%.

De omzet daalde naar $16,9 miljard van $20,7 miljard. Het aantal staalverzendingen steeg in de periode naar 22,2 miljoen ton ten opzichte van 21,5 miljoen ton een jaar eerder.

Analisten geraadpleegd door FactSet hadden gerekend op een nettowinst van $30 miljoen, een EBITDA resultaat van $1,4 miljard en een omzet van $16,9 miljard.

De nettoschuld was eind juni stabiel ten opzichte van eind maart op $16,6 miljoen. ArcelorMittal zegt op schema te liggen om het beoogde niveau op middenlange termijn van $15 miljard te bereiken.


Door Levien de Feijter; Dow Jones Nieuwsdienst: +31-20-5715200; levien.defeijter@wsj.com

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ArcelorMittal verlaagt winstoutlook niet - Market Talk

AMSTERDAM (Dow Jones)--ArcelorMittals (MT.AE) EBITDA resultaat in het tweede kwartaal van $1,40 miljard was licht hoger dan Rabobanks inschatting van $1,33 miljard en de nettoschuld van $16,6 miljard was conform verwachting. Analist Frank Claassen vindt het belangrijker dat het staalbedrijf zijn outlook voor heel 2015 niet verlaagt, omdat er zorgen bestonden in de markt dat de verwachting zouden worden verlaagd. Wel blijft hij zorgen houden over de vraag naar staal uit China die volgens hem zal dalen en zal leiden tot structurele overcapaciteit in de wereldwijde staalmarkten. Het advies blijft hold en het koersdoel is EUR10. Omstreeks 9.30 uur noteert het aandeel 2,0% hoger op EUR8,30, terwijl de AEX met 0,2% stijgt. (levien.defeijter@wsj.com)


Dow Jones Nieuwsdienst: +31-20-5715200; amsterdam@dowjones.com

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ArcelorMittal overtreft verwachtingen, twijfel over kasstroom - Market Talk

AMSTERDAM (Dow Jones)--De tweedekwartaalresultaten van ArcelorMittal (MT.AE) waren beter dan verwacht, zegt Seth Rosenfeld van Jefferies. De EBITDA van $1,4 miljard lag 3% boven de consensus van $1,36 miljard en 8% boven Jefferies' verwachting van $1,3 miljard vanwege beter dan verwachte prestaties van de NAFTA en mijnbouwdivisies. De divisies in Brazilie en Europa presteerden conform verwachting en de divisies in Afrika en het Gemenebest van Onafhankelijke Staten voldeden niet aan de verwachtingen. "Reagerend op zeer zwakke marktomstandigheden heeft het management investeringen teruggebracht om kasstromen te ondersteunen" gedurende de eerste helft, merkt Rosenfeld op. "Maar dit legt meer druk op de kasstromen in de tweede helft", tenzij marktomstandigheden verbeteren. Jefferies heeft een koersdoel van EUR9 en een hold advies. Het aandeel is gisteren gesloten op EUR8,14. (alex.macdonald@wsj.com)


Dow Jones Nieuwsdienst: +31-20-5715200; amsterdam@dowjones.com

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'Handhaven prognose Arcelor positief'

Gepubliceerd op 31 jul 2015 om 10:00 | Views: 3.263

AMSTERDAM (AFN) - Het feit dat staalconcern ArcelorMittal de winstverwachting voor het hele jaar laat staan, is positief nieuws. Dat stelde Rabobank vrijdag in een reactie op de halfjaarcijfers van het bedrijf.

ArcelorMittal gaat uit van een bedrijfsresultaat (ebitda) van 6 à 7 miljard dollar in 2015. ,,Er was vrees dat deze doelstelling weer omlaag zou gaan. Wij zitten aan de onderkant van de bandbreedte met 6 miljard dollar, maar de consensus was al gezakt naar 5,9 miljard dollar'', aldus Rabo.

In het tweede kwartaal kwam het resultaat overigens uit op 1,4 miljard dollar, iets beter dan de marktvorsers hadden voorzien. Rabobank waarschuwde wel dat het halfjaarbericht van ArcelorMittal de zorg niet wegneemt over de Chinese staalmarkt. Doordat daar mogelijk de piek in de vraag is bereikt, kan er voor verschillende jaren sprake zijn van overcapaciteit op de markt.

Het aandeel ArcelorMittal noteerde vrijdag omstreeks 09.45 uur 1,4 procent hoger op 8,25 euro.
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Schnitzer Steel Industries board declares quarterly dividend

The Board of Directors of Schnitzer Steel Industries Inc declared a cash dividend of $0.1875 per common share, payable on August 24, 2015, to shareholders of record on August 10, 2015. Schnitzer has paid a dividend every quarter since going public in November 1993.

Source : Strategic Research Institute
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Banks take over Electrosteel – Report

Business Standard reported in 2013, when a consortium of 27 banks and financial institutions supported Kolkata-based Electrosteel Steels corporate debt restructuringproposal, it was meant to work. The company believed it would translate to cash generation of Rs 2,000 crore, enough to service the debt. However, problems with captive raw material supply and a near-crash in finished steel products in 2014 sent the plan haywire.

On Monday, lenders took management control of ESL by invoking the new strategic debt restructuring rules of the Reserve Bank of India. These allow banks to acquire control of a defaulting company by converting loans into equity, partially or fully.

Debt had risen to Rs 7,150 crore by March 2013 from Rs 4,110 crore at the end of FY11. Losses at the operating level had increased to Rs 87 crore in FY13, compared to a loss of Rs 3.5 crore in FY11. Interest expenses had risen from Rs 1.6 crore in FY11 to Rs 134 crore in FY13. Then, operating losses rose to Rs 172 crore in FY15. Interest cost grew from Rs 177 crore in FY14 to Rs 452 crore in FY15.

The major problem was captive raw material supply for its 2.51 million tonne steel and ductile iron project. ESL had an irrevocable offtake agreement with Electrosteel Castings, a promoter group company, for procurement of coking coal and iron ore at a cost-plus mark-up during the loan agreement with the lenders. In sum, ESL had an assured captive supply of critical inputs, required in any steel project. The contours of the arrangement between the two companies was somewhat like this — ESL was to source iron ore and coking coal from ECL for 20 years. Coking coal requirements for ESL were to be met from a mix of ECL's coking coal mine at Parbatpur (about 30 per cent) and the balance from other sources, according to the company's annual report for 2013-14.

ECL had been allotted the Parbatpur mine in Jharkhand with reserves of 231 million tonnes. It also had an iron ore mine and non-coking coal mine in Jharkhand. This changed with the Supreme Court order on deallocations and the new mining rules.

The company’s 2013-14 report said ESL was selling TMT bars, billets and pig iron in the open market. TMT bars now sell at Rs 26,500 a tonne, from Rs 32,000 a tonne a year before. Billets are Rs 26,000 a tonne vis-a-vis Rs 31,000 a tonne and pig iron at Rs 17,500 compared to Rs 19,000 a tonne. ESL had also lined up plans of tapping the international market and had even exported a few consignments of billets but the export market is not in better shape.

Source : Business Standard
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83 jobs lost at collapsed steel business Kierbeck Thames in Essex

Insider Media reported that more than 80 jobs have been lost following the administration of a steel fabrication business based near Essex. BDO restructuring partners Matthew Tait and Martha Thompson were appointed joint administrators over Kierbeck Thames Ltd on 22 July 2015.

The Barking-based company supplied materials for the engineering and construction industries and employed 86 staff. It ceased trading following the appointment of administrators and 83 members of staff were subsequently made redundant.

Three employees were retained to assist the administrators in the winding up of the company's affairs.

Martha Thompson said: "Regrettably, the difficult economic climate and a reduction in orders have significantly affected Kierbeck Thames and, unfortunately, it has been necessary to make the majority of staff members redundant. The joint administrators are currently taking all necessary steps to maximise the realisable value of the company's assets for the benefit of all creditors, and we are liaising with customers regarding their outstanding orders."

Source : Insider Media
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TimkenSteel announces Q2 results

TimkenSteel, a leader in customized alloy steel products and services, today reported second-quarter net sales of $278.2 million and a loss of $24.3 million or minus 54 cents per diluted share. This compares with an adjusted net income of $25.2 million or 55 cents per diluted share in the same quarter last year.

Source : Strategic Research Institute
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Sberbank files suit against Mechel seeking USD 412,000 in debt

RAPSI reported that Sberbank has filed a suit with the Moscow Commercial Court against the mining and steel giant Mechel and its subsidiaries to collect 24.6 million rubles (about $412,000) in debt, according to a statement released on the website of the court. The co-defendants are MechelTrans, the Bratsk Ferroalloys Plant and Mechel Service. A third party is Izhstal, which is also controlled by Mechel.

Courts are hearing several Sberbank suits against Mechel and its subsidiaries. On July 20, the Moscow Commercial Court ruled in favor of Sberbank in its largest lawsuit against Mechel for 6.76 billion rubles ($113 mln) under a loan agreement signed on October 19, 2013.

Sberbank is one of Mechel’s three largest creditors, alongside VTB Bank and Gazprombank. But unlike these two banks, Sberbank is not satisfied with Mechel’s debt restructuring proposals it received in mid-April.

Sberbank CEO German Gref said they were not business proposals but declarations, in particular the debt-to-shares proposal. Sberbank later said it was negotiating the sale of Mechel’s debts to Russian investors.

The bank also said it would file for Mechel’s bankruptcy if it fails to pay its debts.

According to Mechel’s financial reports, its long-term liabilities as of late June increased to 95.968 billion rubles ($1.6bln) from 91.835 billion ($1.5bln) in late 2014. As of June 30, Mechel’s short-term liabilities amounted to 73.509 billion rubles ($1.23bln), up from 56.79 billion ($950mln) in late 2014.

Source : RAPSI
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POSCO starts restructuring excercise

Korea Times reported that POSCO will shut dozens of non-core units and integrate relevant departments in core businesses to bolster management efficiency amid its deteriorating financial health. The nation's biggest steelmaker has also decided to discontinue the publication of its 21-year-old weekly newspaper for employees. Instead, the company will launch a website that provides POSCO-related news on a real-time basis.

These cost-saving measures came two weeks after POSCO Chairman Mr Kwon Oh-joon pledged a full-scale restructuring of the steelmaker's business portfolio to overcome its financial hardship.

Kwon had said during an investors relations meeting in Seoul on July 15 that "POSCO will do everything it can to overcome its current difficulties and not to repeat the same mistakes. To do so, we have come out with strong reform measures to abolish outdated business practices, improve the management structure and enhance profitability."

POSCO is still dealing with the fallout from last year's industry-wide slump as well as intensifying competition with rivals at home and abroad. Its second-quarter operating profit fell 18.2 percent year-on-year and sales dipped 9.1 percent from a year earlier. The company recently scrapped its plan to build a steel mill in India's Orissa State.

Under the latest cost-saving measure, 88 non-core units will be shut, which account for 16 percent of the company business units. Similar departments at POSCO's two domestic plants ? one in Pohang and the other in Gwangyang ? will be integrated. Many other units will be affected by the restructuring, but POSCO said its core units, including manufacturing and research and development, will remain intact.

Source : Korea Times
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Start of Posco, Dongkuk Brazil steel mill CSP delayed to 2016 - Vale

Reuters reported that Brazilian mining company Vale SA said on Thursday the start up of Cia Siderurgica do Pecem (CSP), a Brazilian steel mill being built with Korea's Posco and Dongkuk Steel Mill Co, will be delayed until the first half of 2016 from the second half of 2015 because of a strike.

Vale also said its planned share of capital spending on the 1.5-million-tonne-a-year project fell by more than half to $1.224 billion in the second quarter because CSP will finance $1.49 billion of expenses on its own account.

Source : Reuters
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