=MARKET BUZZ: Malaysia's Lay Hong Falls; Impairment Charges Could Drag 2Q-Brokers
KUALA LUMPUR (Oct 19) -- Lay Hong falls 6.3% to MYR0.445, lowest since Oct. 2015. Investors are selling amid concern of hefty impairment charge in 2Q results due early Nov., two brokers tell Nikkei Markets. Company has recorded MYR8.6 million of "ageing" trade receivables that have not been impaired for; "we think very likely it would be impaired," says one of the brokers. An impairment would be a big drag on earnings, says analyst at Kuala Lumpur investment bank; adds 2Q expected to be "weak" due to higher material cost. A spokesperson for Lay Hong says not immediately able to respond to request for comment. Shares down 33% since Sep. 28 after executive director Yap Chor Hao warned rising corn prices would result in a "challenging" fiscal year.
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