Sarawak-based stocks see profit taking after polls date announcement

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KUALA LUMPUR (April 15): Several Sarawak-based counters came under profit taking today, a day after the polling date for the state election was announced.

Cahya Mata Sarawak Bhd (CMS), a company linked to Sarawak Yang di-Pertua Negeri and former Chief Minister Tun Taib Mahmud’s family, saw its share price drop 12 sen or 2.81% to RM4.16 in morning trade.

However, CMS recovered to RM4.25 as at 3pm, with 1.6 million units exchanging hands.

Sarawak Cable Bhd fell as much as 3 sen or 1.89% to RM1.56, before bouncing back to RM1.57 at 3pm. Volume however, was rather thin at 189,100 shares.

Hock Seng Lee Bhd (HSL) also lost as much as 5 sen or 2.60% to RM1.88, before paring losses. It stood at RM1.89 as at 3pm. The construction company saw 714,300 units done.

All three Sarawak-based stocks have underperformed, when compared to the FBMKLCI’s gain of 1.94% year-to-date.

Year-to-date, CMS lost 16.76%, Sarawak Cable lost 8.72%, while HSL was flat.

An analyst attached to a local bank said investors are taking profit from these counters, having “bought on speculation and selling on news”.

“I suppose this is a case of profit taking, because people don’t know who will win the election,” the analyst told theedgemarkets.com.

However, he noted that Barisan Nasional is widely expected to remain in power, and is likely to retain its two-thirds majority in the largest state in Malaysia, as the voters are quite happy with new Chief Minister Tan Sri Adenan Satem.

The Sarawak State Assembly was dissolved on April 11, and the Election Commission had yesterday (April 14), fixed May 7 as the polling day.

The long-awaited state election will see 82 seats being contested, an addition of 11 seats as compared with 71 seats in the 2011 state election.