Sarawak Consolidated Industries Bhd (+ve)

TRADING of shares in Sarawak Consolidated Industries Bhd (SCIB) (fundamental: 0.55/3, valuation: 0.3/3) triggered our momentum algorithm last Friday for the seventh time this year. The stock jumped 14 sen to close at RM1.21. A total of 4.63 million shares changed hands last Friday, which was substantially higher compared with its 200-day average trading volume of 313,186.5 shares.

SCIB manufactures concrete products for use in the construction and infrastructure sectors.

Last Thursday, Serba Dinamik Holdings Bhd founder and group managing director Datuk Mohd Abdul Karim Abdullah launched a mandatory general offer to buy over minority shareholders’ stake in SCIB for RM1.10 a share. However, Mohd Abdul Karim, who has been a non-executive director of SCIB since Aug 1, intends to keep the company listed on Bursa Malaysia. Mohd Abdul Karim’s offer values SCIB at RM94.47 million.

As at last Friday, SCIB was trading at 2.05 times its net book value.