Reports » Malaysia

Malaysia stock market and companies daily report (January 17, 2013)

Contributed by Shares Investment

Krisassets Seen As ‘Penny Stock’ Trades 5-fold
Krisassets Holdings jumped five times its theoretical ex-dividend and capital repayment price of six sen as investors accumulated heavily on shares of the real estate firm. Krisassets had previously announced it will be making a cash distribution of RM2.60 a share, comprising a capital repayment and special dividend early next month. The theoretical ex-dividend price of six sen is derived by subtracting the RM2.60 cash distribution from the stock’s closing price of RM2.66 a day earlier. At mid-noon yesterday, the stock was the second largest gainer and fourth most active stock on Bursa Malaysia. The share price traded at 24 sen with 62 million shares done after rising to 24 sen to 30 sen earlier. At current levels, Krisassets shares are likely viewed as a penny stock with substantial trading volume. Meanwhile, Krisassets’ call warrants, the second most active units traded at 18 sen at 3.38pm, after almost quadrupling to a high of 23.5 sen earlier. The stock closed at RM0.235 with 67 million shares done.
Significance: Krisassets had distributed to its shareholders 2.7 billion out of the 3.4 billion units in IGB REIT under a distribution exercise that was completed last October. In conjunction with the disposals, Krisassets planned to reward its shareholders with a single-tier interim dividend and capital repayment of RM15.2 million and RM1.25 billion respectively.

Shareholders-Board Squabble Extends Share Decline
Shares of Bright Packaging Industry extended its decline on Wednesday to RM1.65, the lowest since late December last year due the “shareholders-board” squabble. At sharp noon yesterday, the stock fell 20 sen to RM1.65 with 4,000 shares done. Previously, Bright Packaging was the top performer in 2012, surging from a low of 65 sen in mid-June to a high of RM2 on 31 December. It rose further to RM2.10 on 3 January this year. On Monday, Bright Packaging announced that an EGM would be held on 21 February at the requisition of four shareholders to remove the chairman, an executive director and two directors. The company said the four shareholders who collectively hold 31.19 percent in the aluminium foil packaging firm sought to remove managing director Wong See Yaw, executive director Yap Kok Eng, non-independent non-executive director Wong Siew Yoong and independent non-executive director Yeap Cheng Chuan; as well as any new directors who might be appointed from the date of the requisition to the date of the EGM.
Significance: The four shareholders seek to appoint themselves to the board. Meanwhile, minority shareholders are waiting for a response from the proposed directors as to how they could enhance the value of the company through their proposed board appointments. This is based on the proposed director’s limited knowledge of the current business and industry that Bright Packaging operates it.

Eversendai Up On ADIA Project
Eversendai Corporation shares rose one sen yesterday following the announcement of its Dubai arm, Eversendai Engineering secured a RM325 million subcontract project to carry out structural steel works at the Abu Dhabi International Airport (ADIA). The counter rose one sen to RM1.25 with 1.3 million shares traded yesterday. According to Alliance Research, Eversendai’s current orderbook is estimated at RM1.6 billion with the job at hand. The subcontract deal is the first job Eversendai secured for FY13. This figure is still within Alliance Research RM1.5 billion annual orderbook replenishment target. Kenanga Research believes the deal is likely to strengthen Eversendai’s presence in the Middle East construction sector. “While the management is also actively looking at India and the Gulf Cooperation Council market, we believe the company will continue to secure projects from the Middle East this year,” it added.
Significance: Looking forward, Eversendai is expected to secure structural steel works for a highrise tower in Azerbaijan, which is believed to be worth between RM200 million to RM300 million.