Globaltec rises 5% on power generation plan

-A +A

KUALA LUMPUR (Sept 15): Globaltec Formation Bhd rose as much as 5% on the company's proposed diversification into electricity generation, before settling flat at 10.5 sen at 12.30pm on a volume of 161 million shares traded.

The bourse's most-active stock had earlier risen as much as 0.5 sen to 11 sen.

Globaltec is primarily a contract manufacturer of industrial products like medical components and automation equipment.

The company is now venturing into hydroelectric generation through the acquisition of 49% in Empangan Sejati Sdn Bhd (ESSB).

ESSB owns an indirect 50% stake in Manifest Frontier Sdn Bhd (MFSB), which is a joint venture with Perak Hydro Renewable Energy Corp Sdn Bhd.

MFSB plans to build, operate and own a small hydroelectric plant, with an installed capacity of 15MW at Sungai Perak.

Today, dealers said that the positive movement in Globaltec's share price was not a surprise as the stock had been rising along with other penny stocks

"The announcement on Friday merely provided another push for the stock (Globaltec). The high volume of trade probably was due to parties selling the stocks as much as buyers purchasing them, a dealer told theedgemalaysia.com today,