London - Shares in the steel-making giant ArcelorMittal fell sharply in morning trading on Tuesday, in response to cautious broker comment from Morgan Stanley bank.
The price of shares in ArcelorMittal, the biggest steel-maker in the world, was showing a fall of 3.51 percent to 9.82 euros.
The overall Paris market as measured by the CAC 40 index was down 1.47 percent.
Morgan Stanley analysts issued a note to investors advising that they adjust their portfolios to be under-represented, or under weight, in ArcelorMittal shares, rather than being neutral as they had recommended previously.
They said that the market had priced into the shares a recovery which was unlikely to occur, noting that they were being traded at a price 20 percent higher than the lowest price reached in July.
Meanwhile shares in stainless steel-maker Aperam fell by 3.96 percent to 10.43 euros.
On August 1, ArcelorMittal reported a first-half loss of $1.12-billion and downgraded its target for underlying profit for the whole year, but said it expected an improvement in the second half of the year.
Steel-makers are big users of raw materials, notably iron ore, and in London on Tuesday the price of shares across the mining sector was sharply down as Switzerland-based giant Glencore Xstrata reported a big first-half loss. - AFP