Felda Global Ventures Holdings Bhd (FGV) shares hit a new low of RM4.50 this morning before rebounding and closing at RM4.59.
The share opened today at RM4.55, before dropping to RM4.30 at 9.53am. The initial public offering price (IPO) in June was RM4.55.
Share price peaked at RM5.55 on July 5 and before following a downward trend.
Its previous lowest price was recorded on Nov 12, at RM4.53.
FGV was the second largest initial public offering in the world after Facebook Inc, where Felda (37.17 percent), Employees Provident Fund (7.80 percent), Tabung Haji (7.78 percent) and Kumpulan Wang Persaraan (6.93 percent) are listed as its biggest shareholders.
Alliance Research Company had in October maintained its call to sell, with its expectation that FGVH's earnings will be on a decline for the next three years.
“With earnings prospects of FGV being poorer compared to peers (companies) due to their aged hectarage and heavy replanting activities, we opine the group should trade at discount to peers, rather than at a premium.
FGV was the second largest initial public offering in the world after Facebook Inc, where Felda (37.17 percent), Employees Provident Fund (7.80 percent), Tabung Haji (7.78 percent) and Kumpulan Wang Persaraan (6.93 percent) are listed as its biggest shareholders.Alliance Research Company had in October maintained its call to sell, with its expectation that FGVH's earnings will be on a decline for the next three years.
“With earnings prospects of FGV being poorer compared to peers (companies) due to their aged hectarage and heavy replanting activities, we opine the group should trade at discount to peers, rather than at a premium.
“We also opine that premium valuation on the basis of impending inclusion in the Bursa Malaysia Kuala Lumpur Composite Index in December is also not tenable as investors would be better off invested in Sime Darby, IOI and KLK, all of which have larger free float and lower relative valuation,” said Alliance Research.
Meanwhile, TA Securities today also cut its earnings forecasts for the 2012 financial year and 2013 financial year by 16.4 percent and 10.6 percent respectively.
It attributed the downward revisions due to lower crude palm oil price of between RM2,933 per tonne and RM3,020 per tonne respectively, and also a reduced earnings expectation by Felda Holdings Bhd.
However, TA Securities noted that oil palm trees replanting is on track with 70 percent done as at September 2012.
Opening at RM5.39, FGV shares soared 20 percent to RM5.46 on the first day of trading on June 28.
Meanwhile, TA Securities today also cut its earnings forecasts for the 2012 financial year and 2013 financial year by 16.4 percent and 10.6 percent respectively.
It attributed the downward revisions due to lower crude palm oil price of between RM2,933 per tonne and RM3,020 per tonne respectively, and also a reduced earnings expectation by Felda Holdings Bhd.
However, TA Securities noted that oil palm trees replanting is on track with 70 percent done as at September 2012.
Opening at RM5.39, FGV shares soared 20 percent to RM5.46 on the first day of trading on June 28.
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