KUALA LUMPUR: PROTON HOLDINGS BHD [] share price retreated on Friday, Feb 18 after UOB Kay Hian has downgraded its recommendation on the stock from a "hold" to "sell" on expectation of a loss for its third quarter ended Dec 31, 2010 due to weaker domestic sales and further investments in Lotus which could dilute its earnings in the short term.
At 10.55am, Proton fell five sen to RM4.16 with 112,200 shares traded.
UOB Kay Hian yesterday said it expects Proton to possibly register a modest loss in 3QFY11, underpinned by seasonally weak domestic sales and poor momentum at its overseas operations, reflecting weaker exports to China and aggressive investments by its subsidiary Group Lotus.
'If so, this would be Proton's first quarterly loss since 4Q09 when the company recorded a net loss of RM341.5 million, after making a RM360 million provision for the writedown of property, plant and equipment,' it said in a report issued on Feb 17.
At 10.55am, Proton fell five sen to RM4.16 with 112,200 shares traded.
UOB Kay Hian yesterday said it expects Proton to possibly register a modest loss in 3QFY11, underpinned by seasonally weak domestic sales and poor momentum at its overseas operations, reflecting weaker exports to China and aggressive investments by its subsidiary Group Lotus.
'If so, this would be Proton's first quarterly loss since 4Q09 when the company recorded a net loss of RM341.5 million, after making a RM360 million provision for the writedown of property, plant and equipment,' it said in a report issued on Feb 17.
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