KUALA LUMPUR (Dec 11): Focus Lumber Bhd bucked the broader market's weakness after Insider Asia said the plywood manufacturer stood to gain from the recovering US economy and firmer US dollar.
This is because the US is a major market for export-based Focus Lumber.
Sabah-based Focus Lumber gained as much as one sen or 1% to RM1.17 before settling flat at RM1.16 at 12.30pm. A total of 211,000 shares changed hands.
For comparison, the FBM KLCI fell 8.52 points or 0.5% to settle at 1,757.
"With the US economy recovering and the US dollar strengthening, Focus stands to benefit from both grounds," Insider Asia said.
The stock was selected as Insider Asia’s "Stock of the Day". Insider Asia's report is published in The Edge Financial Daily and theedgemarkets.com today.
Insider Asia also highlighted Focus Lumber's profitability and consistent dividend payout.
According to Insider Asia's report, Focus Lumber's dividends per share rose from six sen in financial year ended December 31, 2011 (FY11) and FY12 to eight sen in FY13. The dividends translate into a 6.9% yield
"Despite the poor market conditions in the past few years due to sluggish housing markets in Japan, US and Europe, Focus managed to stay highly profitable and consistently paid dividends,” Insider Asia said.