Friday, March 18, 2011

Faber falls in early trade, accumulated losses weigh on sentiment

KUALA LUMPUR: Shares of FABER GROUP BHD [] fell in early trade on Friday, March 18 as investors were wary of the company's plans to cancel 75 sen of the existing par value of its RM1 share in a move to reduce its accumulated losses.

At 9.13am, Faber was down eight sen to RM1.83 with 390,300 shares done.

The FBM KLCI fell 1.86 points to 1,490.23. Turnover was 126.14 million shares done valued at RM72.93 million. The broader market was firmer with gainers beating losers 189 to 62 while 103 stocks were unchanged.

Faber said on Thursday that based on its paid-up share capital as at Dec 31, 2010 of RM363.0 million, the credit arising from the reduction of the par value would be about RM272.3 million.

However, investors' concern would be its unaudited accumulated losses as at Dec 31, 2010 which totalled RM422.1 million despite it had declined from the audited losses of RM450.60 million as at Dec 31, 2009.

No comments:

Post a Comment