Fraser & Neave Holdings Bhd (F&N) emerged as the biggest loser today after a spike in commodity prices was seen as potentially affecting its margins.
During the midday break, F&N shares declined by RM1.02 or 3.54% to RM27.78 with 161,800 shares traded.
In a note dated May 6, CGS-CIMB said F&N remained cautious about the recent rise in commodity prices, which are expected to soar in the future.
CGS-CIMB added that F&N did not rule out the possibility of raising the selling price of selected products to get past the high commodity prices.
"Even so, we believe any price increase will be limited to a single -digit quantum as F&N needs to ensure its products are at affordable prices for the entire market," the firm said.
CGS-CIMB maintained a ‘hold’ rating on F&N with a target price of RM31.60.
Meanwhile, UOB KayHian through a note dated May 5, expects F&N margins to be under pressure as commodity prices remain rising.
The firm also maintained a 'hold' rating for F&N shares and increased its target price to RM32 from RM31.80 previously.
