Business

Friday April 10, 2009

Analysts take bearish view on Maybulk

By LEONG HUNG YEE


It is caused by insider selling and drop in shipping rates

PETALING JAYA: Insider selling of shares in Malaysian Bulk Carriers Bhd (Maybulk) and a persistent decline in shipping rates in the last one month have led to bearish reports on the stock.

The company’s executive chairman Teo Joo Kim disposed of a total 1.72 million shares in the company between March 18 and 25, a filing with Bursa Malaysia showed.

The record of depositors on March 3 stated that Teo had a direct interest of 1.72 million shares or 0.17%. However, a filing on March 26 indicated that Teo’s direct interest in Maybulk had been reduced to 0.01%, or 72,500 shares, with the disposal.

Teo Joo Kim

Non-executive independent director Datuk Capt Ahmad Sufian had also sold 30,000 shares in the open market on March 16 and 17, reducing his direct interest to 0.07%.

Since mid-March, Maybulk directors have sold 1.85 million of company shares.

This equals to 13% of the total volumes over the same period, an analyst at a foreign brokerage said in a research report.

The brokerage viewed the action as negative. It noted that the recent selling was on top of the 570,000 shares sold by board members in the first two weeks of March.

“This is viewed as negative, especially as the company will pay out its final dividend for the financial year ended Dec 31, 2008 of only 30 sen on May 8,” it said.

On the other hand, the Employees Provident Fund board had acquired shares in Maybulk, with the latest purchase of 126,000 shares on March 23. The latest acquisition raised its direct interest to 65.71 million shares or 6.57%.

Although Maybulk’s directors have been selling their shares, its share price did not drop as a result. In fact, shares in Maybulk have been on an uptrend since early March. The counter added 2 sen to RM3.30 yesterday.

The analyst said Maybulk’s share price should be correlated with the Baltic Drybulk Index (BDI).

“BDI has fallen 29% from its recent peak, but Maybulk’s shares have risen 20% over the same period,” he said, adding that there would be pressure on Maybulk’s share price to “correct” downwards in line with the movement in BDI.

He forecasts a BDI level of 1,750 points in 2009 and expects it to weaken by a further 14% to 1,500 in 2010.


MAYBULK : [Stock Watch] [News]


For latest Bursa Malaysia indices, charts and other information click here

  • E-mail this story
  • Print this story