KUALA LUMPUR: Shares of MISC BHD [] continued its losing streak on Friday, Sept 9, but in thin trade as investors worried about the impact of its slowing petroleum business and a decline in its revenue.
At 3.38pm, it was down 11 sen to RM7. There were 152,300 shares done.
The FBM KLCI was a marginal 0.81 of a point higher at 1,470.64. Turnover was 499.15 million shares valued at RM597.15 million. There were 289 gainers, 291 losers and 267 counters unchanged.
MISC Bhd's earnings fell to RM121.07 million in the quarter ended June 30, 2011 from RM427.98 million a year ago as it was affected by losses in the petroleum business as freight rates fell.
MISC said the decline in its profit was mainly due to losses in the petroleum business due to the weakening freight rates and higher losses in the liner business.
Analysts said MISC appeared to be losing out to Bumi Armada Bhd.
Credit Suisse Asia Pacific/Malaysia Equity Research had initiated coverage on Bumi Armada with Outperform rating and a RM4.40 target price that implied 19% potential upside.
The research house said under the Economic Transformation Programme, the government is pushing to increase oil production levels through enhanced oil recovery (EOR) projects, and the development of deepwater and marginal fields.
'The end of MISC's de-facto monopoly on the domestic floating production storage and offloading (FPSO) market leaves Bumi Armada well placed to tap into this development,' it said.
At 3.38pm, it was down 11 sen to RM7. There were 152,300 shares done.
The FBM KLCI was a marginal 0.81 of a point higher at 1,470.64. Turnover was 499.15 million shares valued at RM597.15 million. There were 289 gainers, 291 losers and 267 counters unchanged.
MISC Bhd's earnings fell to RM121.07 million in the quarter ended June 30, 2011 from RM427.98 million a year ago as it was affected by losses in the petroleum business as freight rates fell.
MISC said the decline in its profit was mainly due to losses in the petroleum business due to the weakening freight rates and higher losses in the liner business.
Analysts said MISC appeared to be losing out to Bumi Armada Bhd.
Credit Suisse Asia Pacific/Malaysia Equity Research had initiated coverage on Bumi Armada with Outperform rating and a RM4.40 target price that implied 19% potential upside.
The research house said under the Economic Transformation Programme, the government is pushing to increase oil production levels through enhanced oil recovery (EOR) projects, and the development of deepwater and marginal fields.
'The end of MISC's de-facto monopoly on the domestic floating production storage and offloading (FPSO) market leaves Bumi Armada well placed to tap into this development,' it said.
No comments:
Post a Comment