MK Land shares surge as investors embrace Perak MB Inc JV news

-A +A

KUALA LUMPUR (Aug 16): Shares of MK Land Holdings Bhd jumped as much as 14% today, as investors reacted positively to news of its joint venture with Menteri Besar Inc (Perak) (MB Inc) in a proposed mixed development in Perak.

The shares reached an intraday high of 28 sen before paring some gains to close at 26.5 sen in the morning session, still up 2 sen or 8.16% from yesterday's closing. A total of 11.41 million shares were traded.

Yesterday, MK Land announced that its wholly-owned subsidiary Ritma Mantap Sdn Bhd has entered into a memorandum of understanding (MoU) with MB Inc to jointly develop land totalling 226 acres (91.46ha) in Perak, belonging to the Perak state government, into a mixed development consisting of affordable housing and commercial units.

Under the MoU, the two parties will negotiate and endeavour to agree upon an investment structure where MB Inc holds a 15% stake in the proposed development.

MK Land's stock has seen a strong turnaround since the 14th general election. Prior to that, the share price of MK Land has fallen to its one-year low of 16 sen.

At current level, MK Land is trading at a trailing P/E of 16.1 times with a market capitalisation of RM320.71 million.