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Poultry stocks unaffected by higher cost of eggs, poultry

by 5m Editor
14 October 2005, at 12:00am

MALAYSIA - Poultry-related stocks did not attract much interest yesterday despite the announcement that food items, such as eggs, will cost slightly more under ceiling prices the government has set in view of the coming festive season. Domestic Trade and Consumer Affairs Minister Datuk Shafie Apdal was reported yesterday as saying that Grade A eggs would now cost two sen more than the current market price of 28 sen each. Grade B eggs will now be at 29 sen, up from 27 sen, while Grade C eggs will cost three sen more at 28 sen. Chicken, both standard and super, will retail at RM6 and RM6.70 per kg respectively. Major poultry player Leong Hup Holdings Bhd closed unchanged at RM1.19 yesterday with 95,800 shares changing hands while another main poultry company, Farm&#39;s Best Bhd, saw its shares ending the day 0.5 sen higher, or up 0.53%, to 94 sen on low volume of 113,000 shares. Analysts said although there was not much movement in share prices of major poultry players such as Leong Hup and Farm&#39;s Best yesterday, the rise in product prices could translate into even higher profits for these companies in the near term. Both companies reported strong quarterly results recently. “Assuming that the bird flu, which is currently a problem in neighbouring countries, does not make its way here, poultry companies should enjoy reasonable profits on the price increases,” said analysts. They added that Malaysia had escaped the first wave of bird-flu outbreak in the region early last year. <i>Source: The Star Online</i>

5m Editor