FGV-i will not buy-Why poor management ,complicated structure , need to please so many business is difficult
i will not buy-Why poor management ,complicated structure , need to please so many business is difficult
Five hot stocks ahead of elections
Potential stocks: Companies perceived to have strong political affiliations may come into play in the run up to the elections.
FGV is top of the list of favoured stocks that would benefit from the run up to the general election
LAST year, politics dominated the capital markets in the US and Europe. This year, politics is likely to be one of the major themes for Bursa Malaysia. This is on the grounds of growing expectations that the general election could be held before the due date of mid-2018.
Companies perceived to have strong political affiliations such as Felda Global Ventures Holdings Bhd (FGV), Media Prima Bhd, Utusan Melayu (M) Bhd, KUB Malaysia Bhd and Destini Bhd may come into play in the run up to the elections. Except for Destini, which is majority owned by Datuk Rozabil Abdul Rahman, the other companies are in someway or other linked to politics.
In the past, companies that were owned by individuals and land lucrative construction contracts used to be “tagged” as politically linked.
Among them were the likes such as Renong Bhd, Malaysian Resources Corp Bhd and United Engineers (M) Bhd. However, government-linked funds such as Khazanah Nasional and government-linked investment funds have taken over these companies in the aftermath of the 1998 financial crisis. For instance, the Employees Provident Fund (EPF) is the major shareholder of MRCB, which is managed by Tan Sri Mohamed Salim Fateh Din, who is the second largest shareholder.
In 2005, the government announced a massive programme to rejuvenate the government-linked companies and it was headed by Khazanah. Since then, the number of beneficiaries from general election, deemed as “election stocks” has diminished.
“Since 2004 general election, there are very few stocks that can be seen as potential beneficiaries ahead of the general election,” says an analyst.
Analysts, however, believes that based on historical trends, there are trading opportunities in a pre-general election rally.
“The relationship between politics and the stock market is a bit complex but positively reinforcing,” an analyst says.
Below we look at five stocks that are seen as beneficiaries in the run up to the general election because of the political undertones linked to the counters.
Felda Global Ventures Bhd
The world’s largest crude palm oil producer, Felda Global Ventures Holdings Bhd (FGV), has always been perceived as an important political cog to the government.
The reason being FGV is synonymous with settlers in the rural areas which are the stronghold of Umno and Barisan Nasional.
It has been reported that as many as 54 parliamentary constituencies are dominated by Felda settlers and are strongholds of Barisan Nasional, thus making FGV an important company to the government.
In May 2012, the Prime Minister announced that 112,635 settler families would be getting a windfall of RM1.689bil, or RM15,000 for each family.
FGV is facing problem with its matured lands and aging palm trees that see the company’s profits drop and the fact that the share price has yet to regain any of its listing lustre.
FGV’s initial public offering (IPO) in 2012 was the second largest in the world after Facebook and was timed just before the 13th general election in May 2013. Since its listing, FGV shares have fallen more than 60% to RM1.68 from its IPO reference price of RM4.55.
And most recently, the EPF has ceased to be a shareholder of FGV. There were also some issues with the company’s corporate governance practices.
Nonetheless, the group’s new chief executive officer Datuk Zakaria Arshad had said that the worst days for its palm oil business were over, and that the group was looking to lower its cost.
Zakaria said the group’s strategy would revolve around three main thrusts – business rationalisation to make the organisation leaner, drive for operational excellence and selective external growth – all to be executed under uncompromising governance and transparency standards.
In 2015, FGV proposed to acquire a block in Eagle High Plantations from Indonesia’s Rajawali Group. However, when Zakaria took over the helm of FGV, he stated clearly that FGV would not proceed with the deal.
In the latest development, Tan Sri Shahrir Samad, a seasoned politician, has been appointed as chairman of the Federal Land Development Authority (Felda), which is the major shareholder of FGV. He replaces Tan Sri Isa Samad, who remains chairman of FGV.
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BRIEF-Felda Global Ventures Holdings Bhd posts quarterly profit attribtuable ...
Reuters - Nov 10, 2016
Reuters - Nov 10, 2016
Reuters is the news and media division of Thomson Reuters. Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news ...
Felda Global Ventures to divest more this year
The Star Online - Aug 29, 2016
Exuberance over FGV share price stems from new direction to strengthen core ... - Astro Awani
The Star Online - Aug 29, 2016
KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) plans to divest more non-core assets by the end of this year in an effort to monetise its long-standing investments and streamline core operations.
FGV optimistic of stronger H2 - New Straits Times OnlineExuberance over FGV share price stems from new direction to strengthen core ... - Astro Awani
BRIEF-Felda Global Ventures Holdings updates on media article entitled "Fraud ...
Reuters - Nov 23, 2016
Reuters - Nov 23, 2016
SHANGHAI, March 28 China stocks weakened on Tuesday morning on further signs of tightening liquidity conditions after the central bank refrained from injecting short-term funds into the banking system for the third session in a row.
Dramatic change at Felda Global Ventures
The Star Online - Mar 10, 2016
FGV keeping mum on 'new CEO' claim - Astro Awani
The Star Online - Mar 10, 2016
PETALING JAYA: In a surprising turn of events, Felda Global Ventures Holdings Bhd (FGV) is set to announce the departure of chief executive officer Datuk Mohd Emir Mavani Abdullah after a three-year stint at the palm oil firm.
Malaysia's Felda Global Ventures says CEO Emir Mavani to stay - ReutersFGV keeping mum on 'new CEO' claim - Astro Awani
Three Chinese companies eye strategic stakes in FGV
The Star Online - Mar 20, 2017
Report: Three Chinese firms seeking stake in FGV - Malay Mail Online
The Star Online - Mar 20, 2017
PETALING JAYA: Three China-based companies including China National Cereals, Oils and Foodstuffs Corp (COFCO) are vying for strategic stakes in Felda Global Ventures Holdings Bhd (FGV). A source close to FGV told StarBiz that: “These Chinese ...
Lack of synergies between Felda Global, suitors: PublicInvest Research - The Sun DailyReport: Three Chinese firms seeking stake in FGV - Malay Mail Online
Felda Global Ventures confident of emerging stronger in 2017
The Star Online - Jan 2, 2017
FGV to file insurance claim over fraud at unit - The Sun Daily
The Star Online - Jan 2, 2017
PETALING JAYA: After a challenging and tumultuous year that saw investor sentiment on the stock take a beating, Felda Global Ventures Holdings Bhd (FGV), is optimistic of emerging leaner and stronger this year riding on improved plantation sector ...
FGV optimistic of emerging stronger in 2017 - Malay Mail OnlineFGV to file insurance claim over fraud at unit - The Sun Daily
Felda chairman: Where did RM4.3b from listing go?
Malay Mail Online - Feb 12, 2017
Felda did not lose RM4.3b as reported: Shahrir - The Sun Daily
Malay Mail Online - Feb 12, 2017
The Felda logo is seen at its headquarters in Kuala Lumpur, December 28, 2016. - Picture by Yusof Mat IsaKUALA LUMPUR, Feb 12 - RM4.3 billion of the RM6 billion Felda earned from the listing of Felda Global Ventures Holdings Bhd (FGVH) is ...
From one scandal to another - Malaysiakini (subscription)Felda did not lose RM4.3b as reported: Shahrir - The Sun Daily
FGV's financials to be in the black this year
Astro Awani - Feb 8, 2017
Astro Awani - Feb 8, 2017
The challenging period for Felda Global Ventures Holdings Berhad (FGV) has passed and the firm expects 2017 to be the year for its financial to turn to black.
Koperasi Permodalan Felda sells more FGV shares - The Star Online Felda Global Ventures appoints new CEO after a controversial deal stumbles
Malay Mail Online - Mar 30, 2016
Malay Mail Online - Mar 30, 2016
Current Felda Global CEO Datuk Mohd Emir Mavani Abdullah (pic) will be succeeded in April by the head of its downstream operations, Datuk Zakaria Arshad.
FGV appoints Zakaria new CEO - The Star Online FGV says no talks on privatisation
The Star Online - Jan 16, 2017
FGV shares down after privatisation talks ruled out - Malaysiakini (subscription)
The Star Online - Jan 16, 2017
KUALA LUMPUR: Felda Global Ventures Holdings Bhd (FGV) has ruled out talks about a possible privatisation of the world's third largest plantation company by hectarage.
No privatisation talks on the table: Felda Global Ventures - The Sun DailyFGV shares down after privatisation talks ruled out - Malaysiakini (subscription)
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