Hot Stock Time Engineering rises 4% on big dividend yield

Hot Stock Time Engineering rises 4% on big dividend yield
Business & Markets 2013
Written by Kamarul Anw ar of theedgemalaysia.com
Monday, 27 May 2013 12:10

KUALA LUMPUR: TIME ENGINEERING BHD [] (TEB) became investors’
favourite in morning trades as the stock is offering a handsome net
dividend yield of 8.45% for its financial year ended December 2012
(FY12).

At 11:39 am, Time shares rose 1.5 sen or 4.23% to 37 sen with 37.51
million shares transacted. The counter was trading between 36 sen and
38.5 sen a unit earlier.

Last Wednesday, TEB announced a final net dividend of three sen per
share for FY12, with June 18 as ex-date. At the last closing price of 35.5
sen, the stock is offering a net dividend yield of 8.45%.

Dealers said amid “a good market” activity today, investors are looking at
penny stocks that have not moved for a while. They said the company’s
dividend yield could be a major factor in attracting interest to the counter.

SJ Securities senior remisier Goh Kay Chong told theedgemalaysia.com
that apart from the dividend play, TEB has been sought after by
institutional buyers since May 7.

“They slowly accumulated shares on that date. On May 20, these funds
came back in a big way and they are still in the market now (for TEB
shares),” said Goh.

In fact on March 21, institutional funds had started buying TEB shares in
a big way. Bloomberg data shows that 24.5 million of TEB shares
changed hands on that day.

“It’s almost a no-brainer that with a dividend yield that high, investors
wouldn’t want (TEB) shares,” another dealer said.

Comment by Winston Goh: The in and out of the institutional buyer is the key to winning the market.