Takaso active, up on institutional interest

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KUALA LUMPUR (March 24): Takaso Resources Bhd shares rose as much as 7.21% to 52 sen in the morning trades as institutional funds bought into the stock on lower rubber prices.

However, as at 11.02am, the stock pared some of its gains to trade at 51.5 sen, still up three sen or 6.18%, giving it a market capitalisation of RM98.91 million. 

Some 49.73 million shares changed hands between 49 sen and 52 sen, making it the third most actively traded counter across the bourse. 

Takaso (fundamental: 1.25; valuation:0.3) was traded at a low of 25 sen on August 1 last year and climbed to a high of 71.5 sen on Jan 23 this year. 

Takaso is engaged in manufacturing, trading and marketing of high quality babycare accessories, medical contraceptive condoms and toys. 

The benchmark rubber contract on Tokyo Commodities Exchange (TOCOM) for August delivery climbed 3.1% to settle at 214.1 yen (RM6.56) per kilo. 

However, a fund manager said some institutional funds have been accumulating the stock since February16 this year. 

"Some retailer players were selling their shares and institutional funds are absorbing the shares in the open market," he said. 

Another reason, he said, was due to cyclical plays. 

He said the same trend had occured in August last year and January this year. 

"Takaso was traded at 25 sen in August last year but its share soared to a high of 65 sen in October last year.

"The same trading pattern happened again in January this year. Its share price was traded at 50 sen and then rose to a high of 74 sen in the same month," he added. 

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)