FGVH shares rebound after hitting new low
KUALA LUMPUR, Jan 22 — Felda Global Ventures Holdings Bhd (FGVH) shares rebounded to RM 4.50 at the close of trading, after dipping to a new record low of RM 4.27 today.
Yesterday, the plantations giant's shares were traded at RM4.36, its lowest since its listing on June 28, before closing at RM4.42, far below its listing price of RM4.55.
The poor performance of FGVH shares comes on the back of a similar lacklustre performance of the FBM KLCI index.
The FBM KLCI yesterday dropped by 2.43 per cent, a record low in 16 months that almost matches its decline by 2.5 per cent on September 26, 2011, which some market observers have attributed to uncertainties over Election 2013.
The country's benchmark index stood at 1,635.63 points at the close of trading yesterday, down by 40.81 points from yesterday morning.
Today, the FBM KLCI index fell by 0.43 per cent or 6.97 points to close at 1,628.660 points.
FGVH shares have been on a general downward trend since last July.
Market analysts have raised concerns over the profile of FGVH's plantations, with over half of them covered with ageing palm oil trees that produce a lesser yield.
FELDA settlers, seen to be an important vote bank for the ruling Barisan Nasional (BN) coalition, also own stakes in FGVH.