Published: Wednesday June 27, 2012 MYT 9:01:00 AM
Muhibbah falls on APH bad debt provision expectations
KUALA LUMPUR: Shares of Muhibbah Engineering Bhd fell in active trade on Wednesday on expectations that it would have to make a provision for Asian Petroleum Hub's (APH) bad debts this year.
At 9.02am, it was down 11 sen to RM1.09 with 1.50 million shares done. Its related company, Favelle Favco lost 11 sen also to RM1.48.
The FBM KLCI fell 0.29 of a point to 1,593.81. Turnover was 20.21 million shares valued at RM9.76mil. There were 82 gainers, 35 losers and 83 stocks unchanged.
Muhibbah's financials would likely continue to suffer as CIMB Bank Bhd has pulled out from a debt restructuring for APH, delaying APH's payment for construction works done by Muhibbah.
CIMB Equities Research downgraded Muhibbah from a Trading Buy to a Trading Sell on expectations such a provision have risen as CIMB Bank is withdrawing its support for the restructuring of the APH project.