Shares of Singapore-listed palm oil firm Golden Agri-Resources dropped as much as 4% to a one-month low after it posted a fall in its fourth-quarter net profit, prompting some brokerages to downgrade its rating, reported Reuters.
By 9:05 a.m. on Tuesday, Golden Agri's shares were 2.7% lower at $0.73 with over 22.3 million shares changing hands, making it the most actively traded stock by value.
Golden Agri Resources said its fourth-quarter net profit fell 36% to US$748 million ($938 million) from a year ago, hurt by higher fertiliser costs and export tax, as well as a fall in output of palm oil products.
CIMB Research and OCBC Investment Research downgraded the stock to neutral and hold, respectively, citing weaker-than-expected fourth-quarter earnings.
“A more challenging operating environment in China offset our short-term bullish view on crude palm oil prices,” said CIMB in a report.
OCBC Investment Research also cut its target price for Golden Agri to $0.77 from $0.82.
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