Thursday 28 Mar 2024
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KUALA LUMPUR (Aug 20): Focus Lumber Bhd shares rose in thin trade this morning after Hong Leong IB Research said it favoured the stock as it was a net beneficiary of strengthening US dollar (USD) as most of its export revenue was sold in USD while production cost is almost entirely denominated in rinngit.

At 9.17am, Focus Lumber rose 1.45% or 2 sen to RM1.40 with 54,600 shares traded.

In a note today, the research house said that in tandem with the US RV market expected growth on the back of recovering US economy, demand for the Group’s plywood is likely to increase.

HLIB Research said Focus Lumber has net cash per share of 71 sen which is 52% of its share price, and attractive dividend yield of 5.9%.

“On technical perspective, the stock is grossly oversold and about to bottom out from oversold level in near term, substantiated by reading from oscillators.

“Coupled with “Hammer” candlestick on weekly chart, we are targeting RM1.46 and RM1.57, with a long-term objective of RM1.74. However, immediate supports are at RM1.35 and RM1.30. Cut loss below RM1.27,” it said.

 

 

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