KUALA LUMPUR (Dec 17): Shares of Petaling Tin Bhd and Karambunai Corporation Bhd (KBunai), as well as their associated firm FACB Industries Incorporated Bhd (FACBI), continued to rise in price and volume early today after Friday’s sterling performance.
Petaling Tin and KBunai rose in active trades on Friday after FACBI, following the latter’s announcement that it was selling its steel business that could raise its net asset to RM2.70 per share, including cash per share of RM1.90.
All three stocks, controlled by same shareholder Tan Sri Dr Chen Lip Keong, were within the top-10 active list again today, with Petaling Tin heading the list.
At 10.05 am today, Petaling Tin rose 4 sen or 12.1% to 37 sen on trades of 20.15 million shares after hitting a high of 38.5 sen earlier. KBunai was flat at 12.5 sen, with trades of 11.74 million shares after hitting a high of 13 sen earlier.
FACBI posted a gain of 5 sen or 4.8% at RM1.10 per share, after hitting a high of RM1.14 earlier on volume of 3.78 million shares. The share price today was a 100% increase over the closing level of 55 sen four trading days ago.
Dealers said that market players see Petaling Tin as having a potential to rise.
The property company, which posted a loss of RM132,000 on turnover of RM2.65 million for the quarter to September 2012, has net asset value of RM1.09 per share.
“The market operators are now playing Petaling Tin, after their round on FACB on Thursday and Friday. They see the potential to play this counter due to the big difference between the stock price and NAV,” said a senior dealer.
The dealer added that market operators, which include syndicates and licensed day traders, may look at KBunai next.
KBunai, an investment company and services provider, posted a net profit of RM46.62 million in the second quarter to end-September 2012.This was a turnaround from a loss of RM16.44 million for the same period in 2011. Its net asset per share stood at 30 sen as at end-September.
But its Dec 6 announcement of a corporate exercise involving the undertaking of capital reconstruction and a rights issue was not well received. As a result, its share was hit. But its share rose on Friday.
Dealers said on Friday the sentiment in KBunai and Petaling Tin was lifted by FACBI’s news. “FACB is seen as healthy now, with its cash rising to RM1.90 per share after disposing its loss-making business,” said a bank-lined retail dealer.
Technically, SJ Securities Sdn Bhd has put the next level of resistance for FACBI at RM1.39. And this had also attracted interest in the stock, noted some dealers.
Over the weekend, there was also a news report saying that FACBI might issue some special cash dividend to shareholders after the sale of its steel assets.
On Wednesday, FACBI announced that it was selling its loss-making steel business to concentrate on its bedding operation.
The disposal will bring to the group a combined gain of RM68 million, or 80 sen per share, the company said. Net asset will rise to RM2.70 per share, including cash of RM1.90 per share.