Friday 29 Mar 2024
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KUALA LUMPUR (Sept 15): Shares of Felda Global Ventures Holdings Bhd (FGV) surged as much as 16 sen, or 9.8%, this morning on speculation that the counter will be a beneficiary of the government's RM20 billion injection into the stock market through ValueCap Sdn Bhd which was announced on Monday.  

At 10.25am, Felda Global rose 4 sen, or 2.44% to RM1.68, with 51.9 million shares traded. It was the third most active traded stock on the local bourse this morning.

When contacted, a remisier said that the sudden surge in share price could be due to the "over excitement" of investors to the proposed RM20 billion fund into government investment arm ValueCap which will be used to invest in undervalued stocks in the market.

"FGV is one of those stocks which has reached its bottom after being beaten throughout the year. I believe it is just a temporary excitement upon the announcement by the Prime Minister yesterday because there is no catalyst for the stock yet. The plantations are old," said the remisier.

FGV's net profit for the second quarter ended June 30, 2015 contracted about 70% to RM46.09 million from RM151.86 million a year ago. However, revenue gained 8.1% to RM4.19 billion from RM3.87 billion previously.  

This is the second trading day where the beaten down counter saw active trading. Yesterday, it rose as high as 30% to trade at RM1.65 before closing at RM1.64 apiece. The sharp rise prompted Bursa to issue an unusual market activity query on the counter.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

 

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