Stock With Momentum: Puncak Niaga Holdings

This article first appeared in The Edge Financial Daily, on August 6, 2018.
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Puncak Niaga Holdings Bhd (+ve)

Trading in the shares of Puncak Niaga Holdings Bhd (fundamental: 1.35/3, valuation: 1.2/3) triggered our momentum algorithm for the second time since July 4.

The counter finished four sen or 6.61% higher at 64.5 sen last Friday, bringing it a market capitalisation of RM290.71 million after 9.29 million shares exchanged hands.

On July 18, Puncak Niaga named Datuk Zainal Abidin Salleh as its new managing director (MD), taking over from Azlan Shah Rozali.

Azlan, who resigned due to the group’s internal reorganisation, was the acting MD of the group from August 2016. He is the eldest son of tycoon Tan Sri Rozali Ismail, the executive chairman and major shareholder of Puncak Niaga.

Last November, the water supply company filed a RM14 billion lawsuit against former Selangor menteri besar Datuk Seri Mohamed Azmin Ali, his predecessor Tan Sri Abdul Khalid Ibrahim and the state government over the takeover of the state’s water industry, allegedly by way of abuse of power.