Sarawak stocks up on Barisan Nasional landslide victory

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KUALA LUMPUR (May 9): Cahya Mata Sarawak Bhd, Sarawak Cable Bhd and Hock Seng Lee Bhd (HSL) rose following Barisan Nasional’s (BN) landslide victory in the state election last Saturday.

Today, builder and property developer Cahya Mata shares rose as much as nine sen or 2.3% to RM4.06. At 10.55am, the stock pared gains at RM4.01 for a market capitalisation of RM4.31 billion.

Sarawak Cable shares climbed as much as four sen or 2.7% to RM1.53 before trading unchanged at RM1.49 at 10:53am. At RM1.49, the company is valued at RM472.4 million.

Construction company HSL shares rose as much as five sen or 2.7% to RM1.87 before trading unchanged at RM1.82 at 10:56am. At RM1.82, HSL has a market capitalisation of about RM1 billion.

AmInvestment Bank Bhd analyst Thomas Soon wrote in a note today the research firm maintained its "overweight” rating on Sarawak counters.
Soon said Sarawak stocks, which dipped over the past month, could rebound today following BN’s expected landslide victory in Sarawak. These stocks include Cahya Mata, Sarawak Cable and HSL, according to him.

"The BN has won a landslide victory in the 11th Sarawak Election, clinching yet another two-thirds majority (72 out of 82 seats). This was within expectations and the margin of victory was not a surprise. The state election was all about the popularity of the Chief Minister (Tan Sri) Adenan Satem," Soon said.