KUALA LUMPUR: Shares of BRITISH AMERICAN TOBACCO (M) [] Bhd fell as much as 84 sen in intra-morning trade on Monday, Oct 4 after the government raised the prices of cigarettes by 70 sen per 20-stick pack.
At 12.08pm, it was down 62 sen to RM47.78. There were 9,400 shares transacted at prices ranging from RM47.56 and RM47.78.
Maybank Investment Bank Research downgraded BAT to a Sell from Hold as its share price has overshot its fundamental DCF value of RM43.00 (11.2% downside), and 2011's net profit will now likely decline after the economic recovery's assisted 2010.
'Maintain Neutral stance on the Tobacco sector, as we remain buyers of JTI due to its counter-intuitive position benefitting from BAT's declining consumer base,' it said.
Maybank Research said as it had quietly expected, the hike was above the overwhelming majority's expectations of just one sen/stick like in 2009.
At 12.08pm, it was down 62 sen to RM47.78. There were 9,400 shares transacted at prices ranging from RM47.56 and RM47.78.
Maybank Investment Bank Research downgraded BAT to a Sell from Hold as its share price has overshot its fundamental DCF value of RM43.00 (11.2% downside), and 2011's net profit will now likely decline after the economic recovery's assisted 2010.
'Maintain Neutral stance on the Tobacco sector, as we remain buyers of JTI due to its counter-intuitive position benefitting from BAT's declining consumer base,' it said.
Maybank Research said as it had quietly expected, the hike was above the overwhelming majority's expectations of just one sen/stick like in 2009.
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