12/09/2012 (The Star) - Shares of PPB Group Bhd continued to hover at a more than three-year low on Tuesday at RM12.62 in the absence of fresh catalysts and in line with the weaker crude palm oil (CPO) and equities markets.

At 4.20pm, it was down 20 sen to RM12.72, the lowest since July 2009. There were 373,200 shares done at prices ranging from RM12.62 to RM12.92.

The FBM KLCI fell 10.19 points to 1,610.85. Turnover was 813.98 million shares valued at RM1.45bil. There were 149 gainers, 658 losers and 262 counters unchanged.

PPB's share price had been impacted by the weak performance of its 18.3% associate Wilmar International, which is the largest earnings contributor.

Investors had also ignored the positive long-term outlook of PPB. The group had recently announced it had budgeted RM467mil for capital commitments from 2012 till 2014 for its grains trading, flour and feed milling segment (RM342mil), film, exhibition and distribution (RM106mil) as well as property investment and development.

According to Bloomberg, AmResearch has a Hold call with a target price (TP) of RM15.90 while KAF Seagroatt & Campbell Research has a Sell with a TP of RM14. Hwang DBS Vickers research has a Fully Valued and TP of RM11.

CPO third-month futures fell RM37 to RM2,900.