Export stocks – Particle board counters


As we can see, Ringgit had hit its recent low where it 4.1455 this morning. We saw some export counter started to move yesterday.

BCF notice that a lot of exporting counters started to move, but the stock that move the most is actually Particle board counters. In the previous article, we mentioned that the particle board are facing lower average selling price which affect their previous quarter result, so what makes them move again?


Well, Big Canon believe the reason behind the move was due to the Typhoon Jebi. The typhoon had hit Japan quite badly where there are some houses and roof top got blew away by the strong wind. There are also reported injuries as well as death.

Source: https://www.bbc.co.uk/news/world-asia-45406857


This had made me recall the situation when Japan had their worst hit from Tsunami, the rebuild had created a lot of demand towards the wood and particle boards. This had directly and indirectly causes the whole segment to rally.


This time round BCF believe the damage is not as bad as Tsunami, however, it does create demand as well. As a result, it is quite justifiable for the share price to move, but how much will it impact? That will remain mystery. So those who trade these counters, you may have to follow your trading plan and manage the risk. Let’s hope all is well.

https://www.facebook.com/tourinjapanCOM/videos/716381705368182/

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