KUALA LUMPUR: Shares of FABER GROUP BHD  fell in early trade on Thursday, Jan 13 following news of the non-renewal of two Abu Dhabi contracts with an estimated value of RM184 million per annum.
At 9.08am, Faber was down 16 sen to RM2.47 with 407,700 shares done.
The FBM KLCI rose 5.7 points to 1,572.19. Turnover was 202.28 million shares valued at RM127.78 million. Advancers led decliners 274 to 40 while 151 stocks were unchanged.
OSK Research downgraded Faber to a Trading Buy and lowered its sum-of-parts (SOP) valuation from RM4 to RM3.39.
It said the downgrade followed the non-renewal of two contracts of Faber's Abu Dhabi-based subsidiary Faber Ltd Liability Co. (FLCC).
'Despite the still-sizeable price upside, we are downgrading our recommendation from BUY to Trading Buy, largely because non-renewal of the contracts will dampen sentiment and create some uncertainty over the fate of Faber's existing concession in Malaysia,' it said.
Source: The Edge, 13 Jan 2011