Thursday 28 Mar 2024
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This article first appeared in The Edge Financial Daily, on September 23, 2016.

 

Ekovest Bhd (+ve)

SHARES in Ekovest Bhd (fundamental: 1.5/3, valuation: 1.4/3), which triggered our momentum algorithm yesterday for the 10th time, closed down five sen or 2.5% lower at RM1.92. It saw some 9.8 million shares traded, far above its 200-day average volume of 865,308 shares.

The company announced on Wednesday a planned sale of a 40% stake in wholly-owned highway operator Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi) to the Employees Provident Fund for RM1.13 billion. Kesturi is the concessionaire of the Duta-Ulu Klang Expressway (DUKE).

DUKE commenced operations in 2009 with the operator being awarded a 34-year concession for the 18km highway. DUKE Phase 2 (comprising the Sri Damansara Link and Tun Razak Link) is scheduled to be completed by end-2016 and has a toll concession period stretching up to 2059, with another 10-year extension allowed.

The stock is currently trading at 1.2 times its book value.

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