KUALA LUMPUR (July 2): Shares in Kumpulan Perangsang Selangor (KPS) gained as much as nine sen or 5.4% this morning to hit a peak of RM1.77, on news that newly-formed Pakatan Harapan government could finally turn the tide on the Selangor state water woes.

At 11.50am, the stock was trading at RM1.74 — still six sen or 3.6% up — after a total of 925,700 shares crossed, giving it a market capitalisation of RM902.81 million. This translates into a year-to-date gain of 44.1%, from RM1.177 on Dec 29, 2017.

KPS — a company owned by the Selangor government — holds a 30% stake in Pengeluar Air Sungai Selangor Sdn Bhd (Splash), which operates three major water treatment plants in Selangor. Gamuda Bhd owns the other 40%, while the remaining 30% stake is held by Sweet Water SPV Sdn Bhd.

Over the weekend, Economic Affairs Minister Datuk Seri Mohamed Azmin Ali said the restructuring of the Selangor state’s water industry will ‘soon’ be finalised, after which, reasonable water tariffs will be imposed.

Azmin said the restructuring of the water industry services in the state — which has long been delayed due to the lack of understanding and cooperation between the previous federal government and the state government — will now run smoothly, as there is good cooperation between the Pakatan Harapan-led state and federal governments.

According to Azmin, Prime Minister Tun Dr Mahathir Mohamad and Selangor Menteri Besar Amirudin Shari had met recently to discuss the matter and the restructuring of the state’s water industry would be finalised, in accordance with the master agreement signed in 2014.