Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 4): Top Glove Corp Bhd gained 12 sen to RM4.52 today despite a caution note on the likelihood the glove manufacturer will be excluded from the member list of the FBM KLCI component stocks.

Top Glove is at risk of being removed from the FBM KLCI if the rubber glove manufacturer's share price deteriorates further, AllianceDBS Research Sdn Bhd analyst Quah He Wei wrote in a note today. "The semi-annual review of the (30) KLCI constituents will take place in December 2019 based on closing prices on Nov 30, 2019.

"It (Top Glove) is currently ranked 35th by market capitalisation and will be automatically removed if it falls to 36th or below during the review," Quah wrote.

Year to date, Top Glove's share price has tumbled 19.6%. At the closing price of RM4.52 today, Top Glove's market capitalisation was at RM11.57 billion.

Kumpulan Powernet Bhd's share price continues its steady climb today, hitting a day's high of RM1.43 — the highest it has ever reached. It ended the day at RM1.40 compared with the mandatory general offer of RM1 per share, which independent advisor Mercury Securities Sdn Bhd deemed "fair" and "reasonable".

Mercury Securities advised minority shareholders to accept the general offer of RM1 launched by Serba Dinamik Holdings Bhd group managing director and CEO Datuk Dr Mohd Abdul Karim Abdullah. However, the offer price is in fact 40 sen below the market price.

The warp-knitted fabrics manufacturer returned to the black in the financial year ended June 30, 2019 (FY19) with a net profit of RM486,000 compared with a net loss of RM4.97 million in FY19.

JAKS Resources Bhd's upward trend is gathering steam. The construction firm's share price leaped to RM1.10 — the highest level since August 2018. Year to date, the stock has climbed 129%.

The company's earnings are boosted by the construction works of its power plant in Vietnam.

Jaks Resources completed a share placement exercise in late May placing out some 58.46 million shares.

The company delivered a stellar set of earnings for the second quarter ended June 30 (2QFY19), with its net profit jumping near three times, as it recorded higher earnings in its construction division, contributed by engineering, procurement and construction works in Vietnam.

Jaks Resources is due to reveal its 3QFY19 earnings figure by the end of the month. The investing fraternity is waiting to see whether the construction firm's 3QFY19 performance is equally good.

Uzma Bhd started the day on a weak note. The oil and gas stock was under selling pressure, it slipped to a day's low of 92 sen. The selling seems strong judging by the high trading volume of 379.3 million shares. Uzma is the 10th most actively traded counter on Bursa Malaysia today.

The selling was seen as a delayed reaction to the company's announcement last week that its wholly-owned unit is taking legal action against South Korea's Khan Co Ltd (Khan) and Kong Offshore Malaysia Sdn Bhd (Kong).

The legal action is made to recover the overpayment of RM63.14 million works.

However, an analyst who was contacted commented that there was "nothing wrong" with the legal suit as its outcome will either be positive or neutral to Uzma.

"The project was given back to Uzma, and Uzma continued to deliver the project with expenses already booked.

"Should Uzma win the case, there will be a write-back that will reflect positively on their cash flow, but if otherwise, there will be no impact to Uzma as no impairment is needed," the analyst told theedgemarkets.com today.

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