KUALA LUMPUR: Timber-related stocks extended their losses on Thursday, March 31 as stretched valuations and questions over the ability of the companies to meet the expected demand caused the recent rally in the share prices to halt.
At 10.35am, Subur Tiasa fell 14 sen to RM3.70, Jaya Tiasa and Ta Ann lost 10 sen each to RM6.24 and RM6.66, while WTK edged down one sen to RM1.98.
AmResearch Sdn Bhd had yesterday downgraded both JAYA TIASA HOLDINGS BHD [] and TA ANN HOLDINGS BHD [] to a Hold from Buy previously, but with raised fair values to RM7.11 (RM6 previously) and RM7 (RM6.30 previously), respectively.
The research said it now had a neutral stance on the sector, given the recent surge in their share prices, adding that the steep run-up in their share prices ' following its earlier upgrade on Ta Ann and its earnings ' had stretched valuations.
'Any further upgrade appears somewhat unlikely as the availability of logs supply may not keep up with the anticipated increase in demand stemming from the Japan disaster,' it said in a note March 30.
At 10.35am, Subur Tiasa fell 14 sen to RM3.70, Jaya Tiasa and Ta Ann lost 10 sen each to RM6.24 and RM6.66, while WTK edged down one sen to RM1.98.
AmResearch Sdn Bhd had yesterday downgraded both JAYA TIASA HOLDINGS BHD [] and TA ANN HOLDINGS BHD [] to a Hold from Buy previously, but with raised fair values to RM7.11 (RM6 previously) and RM7 (RM6.30 previously), respectively.
The research said it now had a neutral stance on the sector, given the recent surge in their share prices, adding that the steep run-up in their share prices ' following its earlier upgrade on Ta Ann and its earnings ' had stretched valuations.
'Any further upgrade appears somewhat unlikely as the availability of logs supply may not keep up with the anticipated increase in demand stemming from the Japan disaster,' it said in a note March 30.
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