Transocean shares on roller-coaster ride this morning

Transocean shares on roller-coaster ride this morning
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KUALA LUMPUR (May 3): Transocean Holdings Bhd, which is venturing into the cloud service management business, saw its share price go on a roller-coaster ride in the morning session today.

The logistics services started the trading day on a soft note and fell as much as 24 sen or 18.8% to RM3.24 in the first hour after the morning bell.

However, strong buying interest emerged at 10am, lifting the stock back into the positive zone to a high of RM4.75 — up 76 sen or 19% against last Friday’ closing price. 

As at 3pm today, Transocean shares were trading at RM4.35, up 36 sen or 9%, with 2.04 million shares changing hands. 

Interest in the loss-making logistics company has been gaining pace after the company announced that it would be acquiring a 40% stake in software engineering firm Enfrasys Solutions Sdn Bhd for RM20 million in an all-share deal on April 14, paving its way into cloud services.

Enfrasys is the managed service provider (MSP) appointed by Microsoft, which is one of the four cloud service providers (CSPs), to manage cloud services for the public sector under the Malaysia Digital Economy Blueprint (MyDIGITAL).

Microsoft, Amazon, Google and Telekom Malaysia Bhd (TM) are the four CSPs that are slated to invest between RM12 billion and RM15 billion over the next five years to build and manage hyper-scale data centres and cloud services in Malaysia.

The cloud services will then be offered to the ministries and public agencies through the MSPs. However, the MSPs and CSPs must bid for projects from each ministry and public agency.

Joyce Goh & Kathy Fong