Sime declined to comment on an unsourced report from the Malaysian Insider news portal that full year losses would be at least RM2 billion and as much as RM2.5 billion.
“The news report of further huge provisioning from its oil & gas division in the fourth quarter is likely to overhang the share price until the group is able to clarify this issue,” investment bank CIMB said in a report.
Sime’s full year earnings are due on August 26.
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The losses led to Sime, Malaysia’s largest company by market value until it announced the overruns, to name a new chief executive.
Sime’s stock has underperformed the main Kuala Lumpur index by 5.4 per cent over the past month and its market value stands at RM45.2 billion, down from a peak of RM55 billion in the past 12 months.
By 11.15 am, the stock was down 2.5 per cent after falling as much as 2.7 per cent.
CIMB estimates Sime will report a net profit of RM1.49 billion for the full year and rates the stock neutral with a target price of RM8.15.
Sime’s stock hit a 12-month low of RM7.47 on July 6. -- Reuters
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