Pacific & Orient Bhd (P&O) (-ve)

SHARES in Pacific & Orient Bhd (P&O) (fundamental: 0.45/3, valuation: 2.1/3) triggered our stocks with momentum algorithm last Friday for the first time this year.

The stock closed down 1.54% or two sen to RM1.28, with 111,700 shares done versus the counter’s 200-day average of 39,793 shares.

On Jan 4, the group proposed to undertake a bonus issue on the basis of one bonus share for every six existing shares held, on an entitlement date to be fixed.

The proposal, intended to reward shareholders for their continuous support of the company, will involve 40.99 million new P&O shares.

The bonus shares will be capitalised at 50 sen each from the company’s share premium account as at Jan 30, 2017, which stood at RM24.3 million.

The proposed bonus issue is expected to be completed in the first quarter of this year.

P&O is currently trading at 0.88 times its net book value.