Isa: FGV's sliding share price nothing to worry about

Federal Land Authority (Felda) chairperson Mohd Isa Abdul Samad has said that there was no cause for concern for settlers over the sliding share price of Felda Global Ventures Holdings Berhad (FGV).

“I think there is nothing for them to be worried about because it only went down a little and now it’s going back up. In a few months’ time I trust that the confidence (towards FGV) will continue,” he told a press conference after the company’s breaking of fast event at the Felda headquarters in Kuala Lumpur last night.

Mohd Isa was responding to the continuous decline of FGV share price in recent days, even going below the RM5.00 mark on Thursday, which was 10.1 percent lower than its highest ever price of RM5.55 on July 5. The share price has since recovered slightly before the weekend, closing at RM5.05 on Friday.

FGV made its debut on Bursa Malaysia on June 28 and its share price, which was fixed at RM4.55, had soared by 20 percent to RM5.46 in a single day before it began a downward trend in the last two weeks.

Mohd Isa added that the price fluctuation was normal and was dependent on regional markets and commodity prices.

The fall, he said, was consistent with the general share price trend in the country for the last week.

“No matter how great we are, we are still dependent on the global and regional economy. We are also dependent on commodity prices such as rubber, palm oil, soy, gas, petrol... the prices of these items going up or down is something unavoidable,” he said.

Mohd Isa also took a swipe at bloggers who had speculated that prices may plunge by 30 to 40 percent, dismissing the speculation as “without basis”.

‘Prices will rebound’

Citing business research firm Frost & Sullivan which stated that FGV’s fundamentals were strong, Mohd Isa said: “Business-wise, the analysts have a different view from these people (bloggers) who have their own motivations.”

He added that regional share prices including FGV are expected to rebound next week.

“So there is nothing to worry about. We’re also new, it’s been barely two months since we were listed,” he said.

Mohd Isa said that the company has plans to further strengthen its position and will make an announcement in due time.

“I believe when we show people our successes, they will believe in us,” he said.

FGV, which is the main investment arm of Felda, has been touted by federal government as the world’s second biggest initial public offering behind Facebook this year and aimed to benefit the Felda settlers at large.

On a related matter, Mohd Isa said the second round of distribution of windfall payments to the spouses of Felda settlers is still ongoing but is near completion.

On the third and final distribution to the settlers’ offsprings, Mohd Isa said it was up to Prime Minister Najib Abdul Razak to determine when it would be disbursed.