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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