12 May 2012

Tasek Corp: Week 19 (7-11 May) Stock Picks Commentary

Stock Picks #5
Tasek Corporation Berhad (TASEK)

Two-week high : RM 9.39 (Up 72 sen – 8.3%)

“To recap last week on 1 May, Tasek Corp’s CEO Thing Sii Tien @ Yao Sik Tien mentioned that he expects decline in cement demand from private sector jobs this year to be compensated by Government mega projects.

Some of the more prominent Government mega projects include the RM30 billion Mass Rapid Transit (MRT), Iskandar development region in Johor, the Northern Corridor Economic Region, and also the East Coast Economic Region.

Market reacted positively on potential earnings boost from Government mega project to Tasek Corp, the fourth largest cement company in Malaysia with a 10% market share. TASEK stock rose 3.6% (31 sen) since 1 May to week’s highest RM 8.98 on 4 May and closed at RM 8.90 at the end of the week (7 May 2012).”

Market continues to react positively this week on the potential earnings boost from Government mega project, mainly the MRT line project.

Even more so when on 9 May, the Mass Rapid Transit Corporation (MRT Corp) announced that it has awarded four additional packages to construct MRT line at Sg Buloh, Kota Damansara, Petaling Jaya, Seremban Portal, Bandar Tun Hussein Onn and Taman Mesra

The award of tenders indicates that works are soon to commence and this could have a positive impact on the demand for cement in the near future.

TASEK stock price continued surge upwards gaining a total 8.3% or 72 sen May 1 to this week’s highest RM 9.39 on 9 May and closed at RM 9.26 at the end of the week.

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