KUALA LUMPUR: Felda Global Ventures Holdings Bhd's share
price fell four sen, or 0.87 per cent, to RM4.55 as at 11.33 am today as analysts expected a disappointing third-quarter result.
The price was also at par with the oil palm plantation giant's offer price
at its initial public offering, which was Malaysia's largest listing this year
and the second in the world after Facebook.
An analyst said the expectation of disappointing third-quarter result was
due to the weak crude palm oil (CPO) prices and low fresh fruit bunches (FFB)
production growth during the three months under review.
"FGVH could also struggle with its ageing oil palm trees that accounted for
53 per cent of the 320,000 hectares of oil palm estates which rank among the
highest in the industry," he said.
He said a replanting exercise would mean even more loss of income for the
group during the period for the trees to mature.
The analyst said the company was also reportedly suffered from a
productivity issue in terms of tonnes per hectare that ranked as the third
lowest among the major Malaysian plantations firms.
FGV, listed on the main market of Bursa Malaysia on June 28 with 72.96
million shares offered to the public, debuted at RM5.39 and rose to as high as
RM5.50 on July 4. -- BERNAMA