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,Removal of chicken ceiling price seen as a good move

PETALING JAYA: Bursa Malaysia-listed companies in the poultry industry saw their share prices rise, riding on news that chicken prices can be floated according to the market from July 1.

The share price of Leong Hup International Bhd rose two sen to close at 53.5 sen, while Lay Hong Bhd jumped 1.5 sen to 28.5 sen, QL Resources Bhd was flat at RM5.10, Teo Seng Capital Bhd rose four sen to 81 sen and CCK Consolidated Holdings Bhd was up three sen to 59 sen.

Rakuten Trade head of equity sales Vincent Lau said the government’s decision was a positive one as it benefits the poultry industry and the government as well as the chicken supply ecosystem.

“This relieves some margin pressures on the poultry-related companies, especially the *** aller ones. The government also benefits with lower subsidies. The chicken supply situation should improve as market forces will determine supply and demand,” Lau told StarBiz.

Regarding food price increases, Lau said it was inevitable due to global issues such as high crude oil prices and the Ukraine-Russia war.

Rakuten Trade head of equity sales Vincent Lau said the government’s decision was a positive one as it benefits the poultry industry and the government as well as the chicken supply ecosystem.

“However, the government has announced additional targetted assistance via Bantuan Keluarga Malaysia,” he pointed out.

Meanwhile, Centre for Market Education CEO Dr Carmelo Ferlito said the government’s decision is a good move and “absolutely needed – and it even came later that it should have been.”

Ferlito told StarBiz that obviously, this will contribute to food price increases (inflation is a different thing), but the economy is not something that can be reversed.

“The current mi *** atch between supply and demand in the poultry sector is a result of lockdowns; if we did not want to reach the current point, we should have avoided lockdowns. Now the eggs are already scrambled,” he explained.

Ferlito noted that consumers need to accept temporary high prices, so that the supply can step up to meet increased demand.

“This is the only way we have ahead for prices to normalise,” he said.

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  1. 皇冠平台出租(www.huangguan.us)
    皇冠平台出租(www.huangguan.us)
    (2022-06-28 00:04:15) 1#

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      usdt在线交易(www.usdt8.vip)
      (2022-07-13 21:23:01)     

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