The share price of plantation giant Felda Global Ventures Holdings Bhd (FGV), has fallen well below its psychological mark of RM5, closing at RM4.85 yesterday, which is expected to spark another round of debate on its controversial listing last June.
Its share price has been on a continuous down slide since mid-July - flirting around the RM5 level for the last one month.
However, FGV shares came under pressure yesterday and lost 15 sen, dropping to RM4.85 after opening at RM5 in early morning trading.
This is in line with the performance of other plantation counters in the wake of reports that the palm oil price is expected to suffer from the collateral damage arising from the expected weak economic growth of major consumers countries with the Malaysian palm oil inventory also expected to rise to an 11-month high.
PBB was yesterday's top loser, falling 58 sen spiraling down to RM13.28, KLK lost 52 sen to drop to RM22.94 and IOI Corp was down 15 sen to RM5.04.
Key regional markets also fell on Wednesday ahead of a European Central Bank (ECB) meeting and a US jobs report.
FGV's closing price yesterday was just 6.6% above its offer price of RM4.55 and 12.6% lower compared to its peak price of RM5.55 on July 5.
Its share price has been on a continuous down slide since mid-July - flirting around the RM5 level for the last one month.
However, FGV shares came under pressure yesterday and lost 15 sen, dropping to RM4.85 after opening at RM5 in early morning trading.This is in line with the performance of other plantation counters in the wake of reports that the palm oil price is expected to suffer from the collateral damage arising from the expected weak economic growth of major consumers countries with the Malaysian palm oil inventory also expected to rise to an 11-month high.
PBB was yesterday's top loser, falling 58 sen spiraling down to RM13.28, KLK lost 52 sen to drop to RM22.94 and IOI Corp was down 15 sen to RM5.04.
Key regional markets also fell on Wednesday ahead of a European Central Bank (ECB) meeting and a US jobs report.
FGV's closing price yesterday was just 6.6% above its offer price of RM4.55 and 12.6% lower compared to its peak price of RM5.55 on July 5.
The Employees Provident Fund (EPF), one of FGV major investors, has increased its stake in the company from about 5 percent in July to 6.8 percent.
The pressure continued today with FGV's share price sliding to RM4.80, down 5 sen as at 9.45am.
Isa: No cause for concern
FGV, which is the main investment arm of the Federal Land Development Authority (Felda), has been touted by federal government as the world's second biggest initial public offering behind social media Facebook this year, aimed at benefitting Felda settlers at large.
The pressure continued today with FGV's share price sliding to RM4.80, down 5 sen as at 9.45am.
Isa: No cause for concern
FGV, which is the main investment arm of the Federal Land Development Authority (Felda), has been touted by federal government as the world's second biggest initial public offering behind social media Facebook this year, aimed at benefitting Felda settlers at large.
Opening at RM5.39, FGV shares soared 20 percent to RM5.46 on the first day of trading on June 28.
However, some market analysts are cautious about the performance as half of the Felda estates are over 20 years old and the local palm oil industry is facing increased competition from Indonesia.
Despite its sliding share price, Federal Land Authority (Felda) chairperson Mohd Isa Abdul Samad (left) at a press conference last month had said that there was no cause for concern for settlers.
"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 (in FGV) will continue."
The plantation giant also declared an interim dividends of 5.5 sen per share end of last month, amounting to apayout of RM400 for each settler.
However, some market analysts are cautious about the performance as half of the Felda estates are over 20 years old and the local palm oil industry is facing increased competition from Indonesia.
Despite its sliding share price, Federal Land Authority (Felda) chairperson Mohd Isa Abdul Samad (left) at a press conference last month had said that there was no cause for concern for settlers."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 (in FGV) will continue."
The plantation giant also declared an interim dividends of 5.5 sen per share end of last month, amounting to apayout of RM400 for each settler.
Meanwhile, Facebook's stock price hit a new low of US$17.55 yesterday before closing at US$17.73 - a 53.34 percent drop since its US$38 IPO four months ago.
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