Wednesday, September 8, 2010

Petra Perdana slips after OSK Research downgrade

KUALA LUMPUR: Petra Perdana Bhd share price declined on Wednesday, Sept 8 after OSK Research downgraded the company's FY10-11 earnings and its call from Buy to Neutral.

The research house also revised its target price for the stock to RM1.21 from RM1.77 previously.

At 9.46am, Petra Perdana was down two sen to RM1.14 with 44,200 shares traded.

OSK Research in note on Wednesday said during a recent meeting with the company's management over the disappointing 2QFY10 results, it gathered that prospects in the upcoming two quarters would remain unexciting.

"We view Petra Perdana as a stock to look at in 2011 rather than now as we expect O&G activities to have cranked up by then," it said on Wednesday, Sept 8.

OSK Research said currently, the company is still inflicted with unfavourable charter rates and low vessel utilisation due to supply overwhelming demand.

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