That 2017 is an election year and that stocks are prone to a technical reaction, then keep your eye on this stock.
Felda is down 23 sen to RM1.97 a share, but at least one analyst is banking on a rebound.
Hong Leong Investment Bank technical analyst Sia Ket Ee noted that FGV’s share price had tumbled by more than 20 per cent from a 52-week high of RM2.52 on Sept 22 .
“Currently, FGV is trading at 1.25 times price-to-book (P/B) [ratio], which is 34% below its 10-year average of 1.91 times and 41% below its peers’ P/B [ratio] of 2.14 times, supported by [a] 2016 to 2018 earnings compound annual growth rate of 56%.
We believe such huge discounts and [the] ongoing rally in crude palm oil prices are likely to see share prices hitting bottom soon with a technical rebound in the offing,” he said in a note to clients.
