Business & Markets 2013
Written by Shalini Kumar of theedgemalaysia.com
Monday, 07 January 2013 11:22
KUALA LUMPUR (Jan 7): Permaju Holdings Bhd shares rose in active trades today after news that it may be awarded about 809 hectares of timber concession land in Sabah and Sarawak.
“It’s speculative play that is driven by the news. People could have known about this earlier and bought shares and now that the news has broken, they are selling, while others continue to buy,” said Goh Kay Chong, a senior dealer from SJ Securities.
“This could also be cyclical play, or even pre-election play….[Permaju] is
the darling of the speculators.” he added.
At 10:30am, Permaju was trading at 50 sen, up 1 sen or 2%, on volume of 14.36 million. Hitting a high of 52 sen earlier, it was the third most active counter on the exchange.
According to a news report in a local paper, the outcome of the land concession award will be made known by this month.
The potential concession will make Permaju the single largest land concession owner in Sabah, said the report.
Under the terms of the contract, Permaju will clear the virgin jungle and then plant oil palm. Proceeds from the timber extracted will go directly to Permaju.
Gross proceeds from the timber is expected to be more than RM1 billion, the news report