The unexpected losses of the Batsi project led to a sharp drop in industrial stocks.
(Kuala Lumpur, 15th) The property stocks that have been performing well this year received a major blow today due to unfavorable news, and almost all of them experienced a steep decline.
According to $SPSETIA (8664.MY)$In the performance announced by the Sida Group on Wednesday (14th), the unexpectedly loss of the Barton-on-Sea power station project in the second quarter expanded.
This has caused the stock of the company and the joint venture shareholder of another Barton-on-Sea power station project, Sime Darby Industries, to suffer the most significant decline. $SIMEPROP (5288.MY)$As a result, the arbitrage wave eventually spread to the entire industry.
The Barton-on-Sea project is located in London and is a large-scale industrial project jointly developed by the Sida Group, Sime Darby Industries, and the Employees Provident Fund (EPF).
During trading, the Sida Group's stock plummeted by 26 cents or 17.11% to RM 1.26, while Sime Darby Industries also suffered the same fate, hitting a low of RM 1.29 during trading, equivalent to a 20 cent or 13.42% drop.
At the close of the market, the Sida Group was reported at RM 1.29, down 23 cents or 15.13%, marking the largest drop in 16 years, with a single-day trading volume of 1.04223 million7000 shares. Sime Darby Industries, on the other hand, reported RM 1.31, down 18 cents or 12.08%, with a trading volume of 1.00128 million800 shares.
Taking advantage of the opportunity for arbitrage.
A fund manager who declined to be named told the financial media "The Edge" that the surge in Sida Group's stock price earlier could explain why various funds are now taking advantage of arbitrage to exit.
As of Wednesday's close, Shida Group and Senmei Industry have surged by 44.76% and 138.40% respectively since last year.
In addition, due to the widening loss of the Batexi project, some investment banks have downgraded Shida Group's rating today, including Dahua Jixian.
Analysts at Dahua Jixian pointed out that the additional losses of the Batexi project were unexpected, as they were not mentioned in the previous forecasts by Shida Group's management.
Industrial index plunges.
The Malaysian stock exchange's industrial index, which tracks 98 listed developers, fell sharply by 35.53 points or 3.29% to close at 1043.85 points, making it the worst-performing sector in today's Malaysian stock market.
Other major industrial stocks with significant declines of over 2% include IOI Properties. $IOIPG (5249.MY)$ and Shunli Industry. $KSL (5038.MY)$ and UEM Sunlight. $UEMS (5148.MY)$ 。
IOI Properties closed at RM2.07, down 8 sen or 3.72%; Sime Darby reported RM1.72, down 6 sen or 3.37%; UEM Sunrise reported RM1.01, down 3 sen or 2.89%.
Bartex's losses are expected to continue.
The joint venture developer of Bartex is the buyer of an office building, and provides rental income guarantee. However, the net operating income of the building could not reach the level agreed upon in the agreement between the two parties after its completion in April this year, resulting in a loss in the second quarter.
The analyst believes that the above-mentioned losses will continue until the building reaches the desired occupancy rate.
Sime Darby has not yet released its latest quarterly performance.
Source of information: Nanyang Siang Pau
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104995629 : hallo, nanyang, have you studied FA for SIMEPROP before you huha news on Battersea ? SIMEPROP business region is 99.95% in MY, just only 0.02% in UK....Your huha news caused panic sell in the market.
please google, ELMINA data project by SIMEPROP is in progress!
南洋商报 NYSP OP 104995629 : The Battersea Power Station site is owned by a consortium of Malaysian investors comprising PNB, Sime Darby Property, S P Setia and the Employees’ Provident Fund. The development management of the project is being undertaken by British based, Battersea Power Station Development Company.