Thursday, January 15, 2009

US Lumber Prices Lowest In 18 Years.

LINGUI Developments Bhd led declines in Malaysian timber producers in Kuala Lumpur trading after US lumber prices slumped to their lowest in almost 18 years because of the global recession.

Lingui, Malaysia’s second largest timber company by sales, fell 4 sen, or 5.8 per cent, to 65 sen, as of 11:45 am, the worst performer on the benchmark Composite Index, which dropped as much as 2.5 per cent.

Ta Ann Holdings Bhd lost 3.9 per cent to RM3, headed for its lowest close since December 24. WTK Holdings Bhd declined 3.7 per cent, the most since December 11. “We still do not foresee any recovery in the demand and prices of timber logs in the near term,” said RHB Research Institute Sdn Bhd in a report today. It kept its “underweight” rating on the industry.

Lumber yesterday fell US$10, the most allowed by the Chicago Mercantile Exchange, to US$165.70 per 1,000 board feet on slack demand for building materials as the US housing slump intensifies. - Bloomberg

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