Stock Market Books
Thursday, November 1, 2012
Hot Stock Gamuda chief ups stake, stock at 7-month high
Business & Markets 2012
Written by Chong Jin Hun of theedgemalaysia.com
Thursday, 01 November 2012 15:49
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KUALA LUMPUR (Nov 1): Datuk Lin Yun Ling, GAMUDA BHD  group
managing director, had spent some RM65 million to acquire about 18
million shares in the CONSTRUCTION  firm from the open market last
Exchange filings show that Lin had acquired the shares with a combined
stake of 1% in three separate transactions, one each on Oct 25, 29 and
On October 25, Lin had acquired 8.41 million shares at about RM3.50
each. He had purchased another 4.95 million units at RM3.55 a share on
October 29, before buying another 5.11 million shares at RM3.59 each
on October 31,according to the updates.
Following the latest transactions, Lin has a direct stake of 2.55% in Gamuda, according to filings the bourse. This compares to
1.78% on October 5, the filings indicate.
Lin could not be reached for comment when contacted at his office on Thursday, but meanwhile Gamuda shares have rise to a seven month high in active trade on Thursday.
At 3.07pm today, the stock was traded at RM3.76 with some 21 million shares done after rising as much as 5% or 17 sen to RM3.78 earlier. This is the highest price since last April, according to Bloomberg data.
This compares with analysts' target prices for the stock at between RM3.40 which is given by Nomura Malaysia Sdn Bhd, and
RM4.80 by Macquarie Securities Ltd, Bloomberg data show.
Analysts and dealers said the rise in the share price of Gamuda and the substantial volume transacted today could be due to
fund managers rebalancing their portfolio to increase exposure to domestic construction stocks ahead of the general election.
They also believe Lin's move to raise his stake may be a major factor prompting investors to accumulate more shares in the
Also, expectations that Gamuda will seek shareholders' consent to buy back its own shares in the coming AGM could have resulted in better sentiment for the stock, they said.
"The MD (managing director) buying (more shares) alerted investors to follow suit. And also the company is seeking approval to buy back its own shares in the coming AGM.
"Investors suspect something is cooking," SJ Securities Sdn Bhd remisier K.C. Goh told theedgemalaysia.com via sms on Thursday.
Meanwhile, an analyst said fund managers could be increasing their equity exposure in the Malaysian constructor sector, hence, demand for Gamuda shares. According to the analyst, this is in anticipation that the country's general election may be held in June next year, hence, offering a time frame to realise their potential gains within the duration.
Lin's move came at a time when major shareholders and directors of Gamuda had disposed of the stock last month (October).