MARKET DEVELOPMENT
FGVH Shares Down Because Of Uncertain Oil Palm Prices, Says Isa
FGVH Shares Down Because Of Uncertain Oil Palm Prices, Says Isa
06/08/2013 (Bernama) - Felda Global Ventures Holdings Bhd (FGVH)'s share price, which is currently on a downtrend on Bursa Malaysia, is prompted by uncertain oil palm prices.
Chairman Tan Sri Mohd Isa Abdul Samad said the share price was subject to the vagaries of market demand and supply.
"Right now, the share's bearish trend is unavoidable. Besides, the stock is new and the company's core business is based on oil palm plantation. Today, oil palm prices are down and it will definitely impact FGVH's stock price.
"The commodity's price is uncertain and fluctuates up and down. However, I am confident, God willing, that oil palm prices will recover and FGVH's share will follow suit," he commented when asked about FGVH's lackluster performance on Bursa Malaysia.
Earlier, Mohd Isa presented handouts from the Prime Minister Datuk Seri Najib Tun Razak to 22 district mosques in Port Dickson today.
He said FGVH was not an isolated case but many oil palm-based listed companies were facing the same fate at present.
"Some plantation-based companies, which had diversified into real estate development, did not suffer any erosion in share price but since our core business is in oil palm plantation, we cannot escape this market phenomena," he said.
Mohd Isa added that FGVH has taken steps to cushion the impact of low oil palm prices by focusing more on downstream activities, from time to time, in order to reap higher revenue.
"Biodiesel is one downstream activity we have implemented through the acquisition of a new company recently. God willing ... we will start operations soon," he added,
Chairman Tan Sri Mohd Isa Abdul Samad said the share price was subject to the vagaries of market demand and supply.
"Right now, the share's bearish trend is unavoidable. Besides, the stock is new and the company's core business is based on oil palm plantation. Today, oil palm prices are down and it will definitely impact FGVH's stock price.
"The commodity's price is uncertain and fluctuates up and down. However, I am confident, God willing, that oil palm prices will recover and FGVH's share will follow suit," he commented when asked about FGVH's lackluster performance on Bursa Malaysia.
Earlier, Mohd Isa presented handouts from the Prime Minister Datuk Seri Najib Tun Razak to 22 district mosques in Port Dickson today.
He said FGVH was not an isolated case but many oil palm-based listed companies were facing the same fate at present.
"Some plantation-based companies, which had diversified into real estate development, did not suffer any erosion in share price but since our core business is in oil palm plantation, we cannot escape this market phenomena," he said.
Mohd Isa added that FGVH has taken steps to cushion the impact of low oil palm prices by focusing more on downstream activities, from time to time, in order to reap higher revenue.
"Biodiesel is one downstream activity we have implemented through the acquisition of a new company recently. God willing ... we will start operations soon," he added,