RESORTS World Bhd has suffered a more than 21% drop in its share price the past three months, considerably higher than the 8% decline in the benchmark CI. The sharp fall was mainly due to aconcerns that the company could lose its dominant position as the most profitable casino and leisure operator in South-East Asia once Singapore and Thailand allow the setting up of casinos. This spooked foreign funds and many opted to cash out of Resorts.
ALTHOUGH Telekom Malaysia Bhd's share price was only 30 sen lower yesterday compared with three months ago, it had seen choppy trading over the period as investors switched to other telco stocks. Then, concerns over a rise in US interest rates and surging oil prices, which could slow economic growth globally including Malaysia's, also took its toll. Telekom dropped to a three-month low of RM8.65 on May 17 before rebounding on strong first-quarter profits and the appointment of a new chief executive.
TAMADAM Bonded Warehouse Bhd is a classic case of punters buying on rumour and selling on news. Normally a quietly traded stock, this loss-making logistics and warehousing company listed on the second board increased in share price and trading volume after punters got wind that it would embark on an asset acquisition exercise. Its share price rose to a 52-week high of 94 sen on May 13. But soon after the company announced a RM110mil acquisition deal, punters cashed out. Tamadam is still outperforming the CI by 25%.
Malaysian Pacific Industries Bhd has not been doing well of late despite recording a relatively good third-quarter earnings. Its share price has declined by more than 13%, and underperformed the CI by about 7%, during the three-month period. It seems that fund managers downgraded MPI shares on concerns that economic growth will slow should global oil prices remain high, and a possible rise in interest rates worldwide soon. However, the company recently told analysts it expected full-year earnings per share to almost triple from that of last year.
TRANSMILE Bhd has been flying high the past three months, and its share price has risen by nearly 15%, thanks to positive news flow. In March, the air freight services firm received a boost when a company owned by tycoon Robert Kuok's family bought a 28.5% stake in Transmile at RM6.25 a share. In the middle of the month, word went out that Transmile would be among the six new entrants in the much-followed Morgan Stanley Capital International (MSCI) global index, effective month-end.