Poultry stocks enjoy good run on Bursa
POULTRY stocks had a mini rally yesterday, helped by the sudden phoenix-like rise of Lay Hong Bhd's share price
Lay Hong (9385) shares hit limit-up in the first trading session after QL Resources Bhd, a fishmeal and palm oil producer, bought a 23.3 per cent stake for RM11.55 million.
It is the second time in as many years that there has been counter-buying between companies involved in the poultry and palm oil sectors.
Last year, poultry operator Leong Hup Holdings Bhd bought a 35 per cent stake in Alam Muhibbah Sdn Bhd for RM33.9 million to diversify its earnings base.
Leong Hup is the largest poultry-related company by sales in the country, with annual sales of RM1.14 billion.
Lay Hong, in the year to date, is the best-performing poultry-related stock on Bursa Malaysia, appreciating by more than 45 per cent.
Yesterday, interest in Lay Hong spilled over to other poultry stocks. There are 14 such companies on Bursa Malaysia.
CIMB Securities head of research Terence Wong said it was quite normal for the shares of other players in the industry to show some upside as well.
"Riding on good news is normal. Investors can smell something good is coming along and will start buying," he said when contacted by Business Times yesterday.
Over the past five trading days, stocks of industry players such as Leong Hup, CCK Consolidated Holdings Bhd, LTKM Bhd and PW Consolidated Bhd have appreciated by 8 per cent or more.
Nevertheless, Mercury Securities head of research Edmund Tham cautioned that the current upward trend of poultry stocks could be temporary.
"We (analysts) hardly talk or cover poultry stocks unless there is a sudden surge in demand or fear of bird flu outbreak that could affect the market," he said.
Lay Hong (9385) shares hit limit-up in the first trading session after QL Resources Bhd, a fishmeal and palm oil producer, bought a 23.3 per cent stake for RM11.55 million.Last year, poultry operator Leong Hup Holdings Bhd bought a 35 per cent stake in Alam Muhibbah Sdn Bhd for RM33.9 million to diversify its earnings base.
Leong Hup is the largest poultry-related company by sales in the country, with annual sales of RM1.14 billion.
Lay Hong, in the year to date, is the best-performing poultry-related stock on Bursa Malaysia, appreciating by more than 45 per cent.
Yesterday, interest in Lay Hong spilled over to other poultry stocks. There are 14 such companies on Bursa Malaysia.
CIMB Securities head of research Terence Wong said it was quite normal for the shares of other players in the industry to show some upside as well.
"Riding on good news is normal. Investors can smell something good is coming along and will start buying," he said when contacted by Business Times yesterday.
Over the past five trading days, stocks of industry players such as Leong Hup, CCK Consolidated Holdings Bhd, LTKM Bhd and PW Consolidated Bhd have appreciated by 8 per cent or more.
Nevertheless, Mercury Securities head of research Edmund Tham cautioned that the current upward trend of poultry stocks could be temporary.
"We (analysts) hardly talk or cover poultry stocks unless there is a sudden surge in demand or fear of bird flu outbreak that could affect the market," he said.
Comments
Post a Comment