KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Key Highlights:
Stock Performance:
- Puig Brands SA shares dropped 9% intraday on Friday to a low of €17.90, marking a 27% decline since its May IPO.
- Shares partially recovered but ended 3.5% lower at €18.99.
Product Withdrawal:
- Charlotte Tilbury, a Puig brand, issued a global voluntary recall for select batches of its Airbrush Flawless Setting Spray due to an "isolated quality issue."
- Puig clarified that the issue does not affect product safety.
Impact on Earnings:
- Citigroup estimates the affected products account for 5% of Puig's makeup division sales.
- Analysts foresee a low-single-digit downgrade in consensus EPS projections for 2024, though Puig maintains confidence in meeting its full-year and mid-term guidance.
Market Outlook:
- The recall adds pressure to Puig’s stock, which has struggled since its IPO.
- Investor focus will remain on Puig’s ability to manage quality issues and stabilize its performance.
Takeaway:
The voluntary recall underscores Puig’s commitment to quality but has amplified post-IPO challenges. With shares at a new low, confidence in Puig's long-term growth will hinge on its ability to navigate this setback and deliver on guidance.
Comments
Post a Comment