KUALA LUMPUR (July 24): Shares in Karex Bhd and Kossan Rubber Industries Bhd retreated at mid-morning today after the stocks were both downgraded by Hong Leong IB Research to “Sell” (from Hold).
At 10.01am, Karex fell 1.74% or 1.5 sen to 84.5 sen with 737.700 shares traded while Kossan shed 0.87% or 4 sen to RM4.56 with 184,700 shares done.
In a note today, HLIB Research said it was downgrading Karex (TP: 86 sen) to a Sell given the recent run in share price.
“Although management will have instituted margin improvement measures and average selling prices are on the rise, we note that earnings outlook remains soft on the back of a higher overall cost structure as the group builds its original brand manufacturing segment and make inroads overseas.
“We also take this opportunity to downgrade Kossan (TP: 3.84) to a Sell due to valuations,” it said.