Furniture makers advance as ringgit slips against USD

Furniture makers advance as ringgit slips against USD
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KUALA LUMPUR (Nov 18): Shares of furniture makers Heveaboard Bhd, Mieco Chipboard Bhd, Lii Hen Industries Bhd and Federal Furniture Holdings (M) Bhd (FFH) rose in the morning trades today, on the back of a slip in the ringgit against the US dollar.

The Malaysian ringgit slipped 0.2% to 4.3940 versus the greenback, its weakest since Oct 5, as low commodity prices underscored concerns over the country's gas and raw material exports.

At 12.29pm, top active counters Mieco Chipboard climbed 13.76% or 15 sen, after paring gains at 16 sen to RM1.24, with 14.7 million shares done; while Heveaboard went up by 9.56% or 13 sen to RM1.49, with 18.4 million shares transacted.

The stocks bucked broader losses suffered by FBM KLCI, which fell 1.14 points to 1660.39 points at the same time.

Mieco Chipboard’s market capitalisation was RM228.9 million, while Heveaboard, which also posted a more than two-fold net profit at RM18.12 million its third quarter ended Sept 30, 2015, was RM573.8 million.

FFH grew 3.64% or two sen to 57 sen, with 24,400 shares changing hands at the same time, for a market capitalisation of RM45.5 million, and Li Hen up by 4.44% or 12 sen to RM2.82, with 711,600 shares done, for a market capitalisation of RM486 million.

SJ Securities Sdn Bhd's remisier Goh Kay Chong told that the US dollar transaction for the export business was boosting the counters’ income, which favoured investors.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)