FGV flattens after spiking above IPO price

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Felda Global Ventures (FGV) flattened out at RM4.58, three sen higher than its initial public offering price, at 4.30pm today after surging 14 sen to a high of RM4.62 yesterday.

Analysts say there are a combination of reasons why the stock, which has been on a downward trend and stayed mostly under water in 2013, suddenly saw a sudden boost.

Among others, they said the Palm Oil Conference which concluded in Kuala Lumpur yesterday gave some certainty on the outlook of CPO prices.

This, said JF Apex Securities Sdn Bhd, gave a boost to the Plantation Index which rose 119.26 points yesterday.

The planters also rode buying trend which boosted the FBM KLCI almost 10 points yesterday, the broking house said in a note.

An analyst with Public Investment Bank Bhd said that while the upcoming general election has set a cautious tone among investors, there is no shortage of funds.

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