Stock Name: JCY
Company Name: JCY INTERNATIONAL BERHAD
Research House: RHB

KUALA LUMPUR: JCY International Bhd's share price extended its losses in late afternoon trade on Thursday, Oct 7 as investors maintained their cautious outlook for the hard disk drive manufacturer.

At 3.34pm, JCY was down three sen to 94 sen. It was actively traded with 12.79 million shares done.

The FBM KLCI slipped 2.65 points to 1,476.96. Turnover was 515.38 million shares valued at RM887.64 million. The broader market was weaker with losers beating gainers 430 to 221 and 295 stocks unchanged.

RHB Research had in a report issued on Tuesday, Oct 5 said that in the near term, it remained cautious on the sector and reiterated its Neutral call.

It cited the risks arising from: 1) persistent weak demand for PCs; 2) Overcapacity that will put downward pressure on average selling prices and ultimately margins; and 3) weaker-than-expected consumer spending due to the austerity measures in the Euro zone and uneven economic recovery in the U.S.

The research house maintained its forecast for JCY and fair value of RM1.32.