Ancom Bhd (-ve)

SHARES in Ancom Bhd (fundamental: 0.55/3, valuation: 0.9/3) gained half a sen or 1.3% to settle at 39 sen, with 1.66 million shares traded yesterday, valuing it at RM83.96 million.

The group swung into the red in its fourth quarter ended May 31, 2016 (4QFY16) with a net loss of RM5.24 million versus a net profit of RM4.4 million in 4QFY15, as revenue slipped 9.25% to RM370.85 million from RM408.65 million.

For the full fiscal year, Ancom incurred a net loss of RM7.04 million in FY16 against a net profit of RM2.17 million a year ago.

Ancom said its key business segments, namely the agricultural and industrial chemical division and the polymer division, are expecting challenging business environments with continued pressure on profit margins amid oil price and currency volatility.

It also said continued weakness in the domestic economy had affected the advertising industry in general. As such, its media division will face sales pressure under the prevailing economic conditions.