MARKET DEVELOPMENT
Do Not Fret, FGV Shares Will Rebound - Market Analysts
Do Not Fret, FGV Shares Will Rebound - Market Analysts
29/04/2015 (Bernama) - Settlers of the Federal Land Development Authority (Felda) schemes who owned shares of Felda Global Ventures Holding Berhad (FGV) need not worry about its price as it has potential to grow in future, said market analysts.
Stock analyst, Nazarry Rosli said FGV share price is in line with the palm oil market which is experiencing a fall in price but the situation is not worrying.
"At the moment, not only is FGV counter trading at a low level but the trend affects all palm oil linked counters as a result of the low palm oil price.
"Nonetheless, the situation is not long term as the world palm oil market is expected to stabilise soon," he told Bernama Wednesday.
He denied allegations by PAS that the government listed FGV shares in Bursa Malaysia was to the detriment of Felda settlers.
Nazarry also agreed with the recent statement of Deputy Prime Minister Tan Sri Muhyiddin Yassin that the government set up FGV to ensure Felda grows into a successful corporate body.
PAS in its Rompin by-election campaign attempted to capitalise on the issue of FGV shares as more than 51 per cent of 53,294 registered voters comprised Felda settlers.
The by-election, a straight fight between Barisan Nasional's Datuk Hasan Arifin and Nazri Ahmad of PAS will be held on May 5.
Nazarry, who is also Jupiter Securities Sdn Bhd director, advised settlers who own FGV shares to keep them and not to sell to avoid realising losses.
In fact he encouraged other investors to take the opportunities to invest in FGV shares as it was rather low and cheap now.
Based on Bursa Malaysia closing on Tuesday, FGV shares were traded at RM2.07 compared to RM4.45 when the shares were opened to retailers on June 28 2012.
The view is also supported by economic analyst, Prof Dr Mohd Fauzi Mohd Jani who clarified that the fall in crude oil price had affected palm oil price.
"When crude oil price fell drastically, demand for various commodities including palm oil also suffered," he said.
He said the fall of FGV share price was not due to mismanagement but was solely based on global palm oil price and it has the potential to rise in future.
In this regard, Nazarry said to balance the present situation, Felda needed to look at potential businesses in other sectors such properties as it was profitable even in the short term.
FGV incorporated in Malaysia as a private limited company in 2007, initially operated as the commercial arm of Felda and on June 28, 2012, the company was listed on the main market of Bursa Malaysia Securities Berhad as Felda Global Ventures Holdings Berhad.
As at December 31, 2013 its market capitalisation was RM16.6 billion, and is one of Malaysia's leading global agribusiness as well as the world's largest producer of crude palm oil (CPO) with operations in more than 10 countries across Asia, North America and Europe.
Besides being involved in palm oil upstream and downstream industries, it also has interests in sugar, rubber, research and development, agri services, transport, logistics, marketing and others.
Stock analyst, Nazarry Rosli said FGV share price is in line with the palm oil market which is experiencing a fall in price but the situation is not worrying.
"At the moment, not only is FGV counter trading at a low level but the trend affects all palm oil linked counters as a result of the low palm oil price.
"Nonetheless, the situation is not long term as the world palm oil market is expected to stabilise soon," he told Bernama Wednesday.
He denied allegations by PAS that the government listed FGV shares in Bursa Malaysia was to the detriment of Felda settlers.
Nazarry also agreed with the recent statement of Deputy Prime Minister Tan Sri Muhyiddin Yassin that the government set up FGV to ensure Felda grows into a successful corporate body.
PAS in its Rompin by-election campaign attempted to capitalise on the issue of FGV shares as more than 51 per cent of 53,294 registered voters comprised Felda settlers.
The by-election, a straight fight between Barisan Nasional's Datuk Hasan Arifin and Nazri Ahmad of PAS will be held on May 5.
Nazarry, who is also Jupiter Securities Sdn Bhd director, advised settlers who own FGV shares to keep them and not to sell to avoid realising losses.
In fact he encouraged other investors to take the opportunities to invest in FGV shares as it was rather low and cheap now.
Based on Bursa Malaysia closing on Tuesday, FGV shares were traded at RM2.07 compared to RM4.45 when the shares were opened to retailers on June 28 2012.
The view is also supported by economic analyst, Prof Dr Mohd Fauzi Mohd Jani who clarified that the fall in crude oil price had affected palm oil price.
"When crude oil price fell drastically, demand for various commodities including palm oil also suffered," he said.
He said the fall of FGV share price was not due to mismanagement but was solely based on global palm oil price and it has the potential to rise in future.
In this regard, Nazarry said to balance the present situation, Felda needed to look at potential businesses in other sectors such properties as it was profitable even in the short term.
FGV incorporated in Malaysia as a private limited company in 2007, initially operated as the commercial arm of Felda and on June 28, 2012, the company was listed on the main market of Bursa Malaysia Securities Berhad as Felda Global Ventures Holdings Berhad.
As at December 31, 2013 its market capitalisation was RM16.6 billion, and is one of Malaysia's leading global agribusiness as well as the world's largest producer of crude palm oil (CPO) with operations in more than 10 countries across Asia, North America and Europe.
Besides being involved in palm oil upstream and downstream industries, it also has interests in sugar, rubber, research and development, agri services, transport, logistics, marketing and others.