Timber companies see turnaround in share prices

KUCHING: Sarawak-based timber companies have seen gradual recovery in their share prices on the latest reports of price uptrend for tropical logs and increasing demand for plywood, especially from Japan.

RHB Research has upgraded the timber sector to “Overweight” from “Neutral” as it is positive on the sector’s prospects as a whole, on the back of a strong recovery in log prices due to supply shortage in Malaysia and improving economic activity in Japan that has resulted in rising plywood imports.