=MARKET BUZZ: Malaysia's Cement Stocks Fall On Weak Demand, Price War
KUALA LUMPUR (Dec 07) -- Cement companies fall on weak demand from property segment, and as continued price war hurts margins. Lafarge Malaysia slips 7.5% to 3-month low of MYR6.19; Tasek Corporation near 1-year low, down 2.6% at MYR12.08; Hume Industries falls 0.5% at 6-month low of MYR2.15. "While 2018 could still be a recovery year for cement demand though from a low base, the recent freeze on approvals for high-end properties priced at above MYR1 million each could negate the anticipated turnaround in residential/non-residential cement demand," says CIMB Investment Bank in investor note; keeps Reduce call on Lafarge, lowers target price to MYR6.26 from MYR6.34. Company cautions market still engaged in price war that could continue. "New stream of cement- intensive stage/order for new major projects could only emerge in 2H18 at the earliest, in our view," adds house.
- By Chong Sin Hao; Dave.Chong@nikkeinewsrise.com; +60320267363
- Edited by Abhijit Basu
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