KUALA LUMPUR: Timber stocks fell on Wednesday, March 30 as investors took profit after the strong run-up as sentiment perked up on Japan's reCONSTRUCTION [] story after the earthquake.
At 2.51pm, Ta Ann was down 35 sen to RM6.70, Jaya Tiasa lost 16 sen to Rm6.40 and WTK 13 sen to RM1.97 while Lingui shed nine sen to RM1.90.
However, the FBM KLCI advanced 10.64 points to 1,530.73. Turnover was 1.66 billion shares valued at RM1.51 billion. There were 566 gainers, 231 losers and 254 stocks unchanged.
AmResearch had advised investors sell into strength.
It downgraded both Jaya Tiasa and TA ANN HOLDINGS BHD [] to a Hold from Buy previously, but with raised fair values to RM7.11 a share (RM6 previously) and RM7 a share (RM6.30 share previously), respectively.
'Both valuations peg their respective upward revised FY11F EPS of 47.4 sen and 46.7 sen, to an unchanged PE of 15 times.
'We now have a neutral stance on the sector, given the recent surge in their share prices. We find that the steep run-up in their share prices ' following our earlier upgrade on Ta Ann and its earnings ' has 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.
At 2.51pm, Ta Ann was down 35 sen to RM6.70, Jaya Tiasa lost 16 sen to Rm6.40 and WTK 13 sen to RM1.97 while Lingui shed nine sen to RM1.90.
However, the FBM KLCI advanced 10.64 points to 1,530.73. Turnover was 1.66 billion shares valued at RM1.51 billion. There were 566 gainers, 231 losers and 254 stocks unchanged.
AmResearch had advised investors sell into strength.
It downgraded both Jaya Tiasa and TA ANN HOLDINGS BHD [] to a Hold from Buy previously, but with raised fair values to RM7.11 a share (RM6 previously) and RM7 a share (RM6.30 share previously), respectively.
'Both valuations peg their respective upward revised FY11F EPS of 47.4 sen and 46.7 sen, to an unchanged PE of 15 times.
'We now have a neutral stance on the sector, given the recent surge in their share prices. We find that the steep run-up in their share prices ' following our earlier upgrade on Ta Ann and its earnings ' has 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.
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