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| Rising with Wilmar |
In December 2012 it sunk to RM 11.18 from RM 17.00 which was its January 2012 price.
Imagine the fortunes of Wilmar has impacted negatively on PPB causing a fall of almost RM6.00.
My observations was that it was mostly sold by pension funds such as the EPF.
Fortunately, selling was thin and mostly trade offs among EPF appointed traders.
Today and yesterday, PPB Group shares rebounded.
It rose 2.5 per cent, or 30 sen, to
RM12.30 as at 12.01 pm today, boosted by expectations of better current
financial year results by research houses. About 439,400 shares changed
hands.
PPB's recent earnings, which had been dragged down by its associate Wilmar,
were expected to improve for the financial year 2013 (FY13), said Kenanga
Research in its research note here.
"The estimated earnings growth for FY13 will be supported by an expected
return to profitability at Wilmar's Oilseeds and Grains division and a better
prospect at Wilmar's palm oil downstream business due to its 50 per cent
capacity expansion in Indonesia in the second half of 2012," it
said.
The research house said that in the near term, the share prices' downside
should be supported by its book value of RM11.75 as at third quarter 2012.
Kenanga Research has set a target price of RM14.38.
PPB closed up 48 sen to RM12.48
