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Lafarge advances on cement price hike
by hlk Wed 01 Aug 2012, 12:53
KUALA LUMPUR: Shares of Lafarge Cement rose to a high of RM8.20 on Wednesday on news that it had raised cement prices by about 6%.
At 11.05am, it was uo 19 sen to RM8.19. There were 110,600 shares done at prices ranging from RM8 to RM8.20.
However, its rival Tasek Cement fell nine sen to RM9.75. There were 21,900 shares done.
The FBM KLCI rose 0.21 of a point to 1,631.81. Turnover was 531.87 million shares done valued at RM365.67mil. There were 233 gainers, 278 losers and 304 counters unchanged.
RHB Research Institute raised Lafarge's fair value by 23% from RM7.34 to RM9.05 and upgraded it to an Outperform from Market Perform.
The research house said Lafarge pointed out the key reason for the hike was to recover "rising manufacturing and distribution costs since 2012".
However, RHB Research was more inclined to see the price hike as a reflection of an improving demand picture in the local cement industry backed by key public infrastructure projects.
"This allows cement producers to flex their pricing muscle," it said.
At 11.05am, it was uo 19 sen to RM8.19. There were 110,600 shares done at prices ranging from RM8 to RM8.20.
However, its rival Tasek Cement fell nine sen to RM9.75. There were 21,900 shares done.
The FBM KLCI rose 0.21 of a point to 1,631.81. Turnover was 531.87 million shares done valued at RM365.67mil. There were 233 gainers, 278 losers and 304 counters unchanged.
RHB Research Institute raised Lafarge's fair value by 23% from RM7.34 to RM9.05 and upgraded it to an Outperform from Market Perform.
The research house said Lafarge pointed out the key reason for the hike was to recover "rising manufacturing and distribution costs since 2012".
However, RHB Research was more inclined to see the price hike as a reflection of an improving demand picture in the local cement industry backed by key public infrastructure projects.
"This allows cement producers to flex their pricing muscle," it said.
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