Oriental Holdings Bhd (-ve)
Trading of the shares in Oriental Holdings Bhd (fundamental: 2.2/3, valuation: 2.6/3) triggered our momentum algorithm yesterday for the first time since November 2016.
The counter closed up four sen or 0.65% at RM6.24, after 578,700 shares were traded, exceeding its 200-day average volume of 132,981 shares.
On Dec 27 last year, Oriental announced that it would be making a financial advance of US$6 million or RM25.09 million to its Indonesian palm oil plantation subsidiary PT Sumatra Sawi Lestari.
Sumatra Sawi Lestari is 90% owned by Oriental Holdings’ wholly-owned OBS Singapore Pte Ltd, and 10% owned by PT Tradisi Bina Usaha.
The transaction is to address Sumatra Sawi Lestari’s inability to secure favourable credit rating requirements to obtain offshore borrowings, owing to it being in the early stages of developing its oil palm plantation.