Last week saw the spectacular rise of Lafarge from RM9 to the high of RM10. However, the share price retreated to RM9.40 at the close of the week. Judging from today's recovery to RM9.60 with strong volume (at 3.05), it appears that appreciation of Lafarge share price is more than just a flash in the pan. There was a single cross trade deal of 500,000 shares at RM9.59 early in the afternoon session.
We do not know exactly the reasons behind the recent price rise of Lafarge. It could be any of the following factors: tight cement supply, increasing cement demand, foreign fund buy, potential high dividend payout and capital repayment or even possibility of privatization. Really, nobody knows. As long as the momentum continues, there is money to be made. Happy trading!
The third quarter is expected to further strengthen the performance of the asset to go to zero debt, do not rule out that will expand the capital back to back, or reward investors through high dividend returns.Thanks Petracot on close follow up.
Another good day for Lafarge, climbing 40 sen to closed at RM9.80 per share. Incidentally, Maybank IB recently has a write up on Lafarge, painting a rosy picture for the next few months. Maybank has a target price of RM10.10 for Lafarge. They opine that there is possibility of Lafarge to distribute capital repayment of 58 sen in addition to 38 sen of annual dividend. The decision could be made by the Board of Lafarge as soon as November 2012, according to the report.
This is just an analysis and opinion of the Maybank IB. The probability is there but please take it with a pinch of salt.
If the analysis is correct, shareholder will be expecting 58sen/shr capital distribution potential and expectation of 16sen/shr. Total 74sen/shr in potential with finger cross... We'll see what is coming out from upcoming board meeting in Nov 2012...
Lafarge has come to the great wall of RM10 apiece. It touched and bounced back, several times. For Lafarge to punch through this great wall, it requires very very bullish factors. One of the following could do the job: announcement of big capital repayment or exceptionally good 3Q results to be released end of November. These are all uncertain and unknown factors. Sit back and watch if anything would happen.
Lafarge broke through the RM10 barrier yesterday,but the victory was short-lived. The share price fell back to under RM10 level this morning again. It would take more than speculative interest for the counter to push through and maintain above the RM10 level.
One other factor that may positively influence Lafarge performance is Iskandar development in Johor. With Singaporean investors flocking to the region to develop industrial, commercial and educational properties, the demand for cement will inadvertently increase. Iskandar Region is a massive development corridor; when constructions are in full swing, lots and lots of cement will be required. Perhaps, this is one factor that will provide the catalyst needed to propel Lafarge beyond the RM10 mark.
PETALING JAYA: Cement maker Lafarge Malaysia Bhd said the increase in fuel prices would have a definite effect on the cost of its products.
“The increase would naturally have an impact on businesses in terms of transportation cost for both production and delivery to the market,” said a spokesman from the company.
Because ppl think that RPGT will reduce the new house launching. So, less house less cement can be sell. :p .But cement not only just use in housing delopment.
might be under same basket of fund .....when the fund sell to meet redemption requirement, i believe all the portfolio in the same basket will be sold down.....
look at Aeon, Aeon Credit, MAHB, Tasek, Larfarge, Panamy, etc....
some foreign is withdraw, almost every day there is net selling from foreign investor in share market. Now people is focusing O&G sector. Good time to accumulate.
dividend soon to be out = 15cent..... quarter 4 result will be better than previous Q4........ Profit & revenue is going to better than last year...... time to accumulate...........
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Posted by petracot > 2012-10-08 15:09 | Report Abuse
Last week saw the spectacular rise of Lafarge from RM9 to the high of RM10. However, the share price retreated to RM9.40 at the close of the week. Judging from today's recovery to RM9.60 with strong volume (at 3.05), it appears that appreciation of Lafarge share price is more than just a flash in the pan. There was a single cross trade deal of 500,000 shares at RM9.59 early in the afternoon session.
We do not know exactly the reasons behind the recent price rise of Lafarge. It could be any of the following factors: tight cement supply, increasing cement demand, foreign fund buy, potential high dividend payout and capital repayment or even possibility of privatization. Really, nobody knows. As long as the momentum continues, there is money to be made. Happy trading!