Poultry stocks continue run-up on strong earnings

MALAYSIA - After a price run-up last week, poultry stocks hogged the limelight again at the start of the trading week yesterday as chicken and duck breeders dominated Bursa Malaysia's top gainers list, led by Leong Hup Holdings Bhd, which surged 35 sen, or 25.93%, to a year high of RM1.70.

Shares of Farm Best Bhd, which runs poultry hatcheries, rose 8 sen, or 3.83%, to RM2.17; while poultry and eggs farmer LTKM Bhd shares - the cheapest in terms of price-earnings ratio - rose 17 sen, or 13.93%, to RM1.39 on a volume of 394,700 shares.

Leong Hup shares gained 30 sen last week while Farm Best shares started this week 26 sen higher than its Friday close.

Emivest Bhd, a duck breeder and controlled by Leong Hup, has also been running up since the middle of last week, surging from 43 sen on Dec 21 to end last week at 51 sen. The counter surged 10 sen, or 19.61% to 61 sen yesterday.

A remisier said the rally in poultry stocks was due to dissipating fears of a bird flu outbreak and the improving performance of poultry companies.

Source: Star Publications

28 December 2005