Frost & Sullivan: Gamuda, PetGas, TNB, Petron and Sapura affected by new govt policies and reviews

TheEdge Tue, May 22, 2018 02:51pm - 5 years View Original


KUALA LUMPUR (May 22): Frost & Sullivan Inc said Malaysian share prices are affected by impending review of the previous government's policies and large infrastructure projects, goods and services tax removal, and petrol subsidy.

The market researcher which noticed this by comparing the pre-14th general election (GE14) closing price on May 8, 2018 with the post-GE14 closing price on May 14, 2018, said other factors like overall business strategy and cash generation for key players also affected the stocks in the short-term.

For instance, it found that Gamuda Bhd’s stock has been adversely impacted due to significant involvement in construction projects, even though it has a small portfolio in the energy sector.

“Petronas Gas Bhd (PetGas) and Tenaga Nasional Bhd (TNB) have also declined marginally, due to the impending review of projects in the pipeline and potential review of the practice of direct award of power projects through single-party negotiation,” Frost & Sullivan added in a statement today.

Frost & Sullivan said the attractiveness and outlook for Ranhill Holdings Bhd and Malakoff Corp Bhd have improved, after allegedly not doing well during the previous regime, and that things to turn around for them has likely resulted in this positive momentum.

The outlook for Petron Malaysia Refining & Refining Marketing Bhd and Sapura Energy Bhd is considered positive, due to the jump in crude oil prices, about 8% between May 8 and May 14, 2018, resulting in higher upstream investment and expectations of increased consumer retail spending power, the statement added.

“The increase in international crude oil prices has also helped the ringgit remain stable, with a marginal drop of 0.02%, which indicates the confidence of foreign investors in the Malaysian economy,” the market researcher added.

At 12.30pm, Gamuda rose 21 sen or 5.12% to RM4.31, with 4.09 million shares done, for a market capitalisation of RM10.5 billion.

Petron slipped 36 sen or 3.96% to RM8.73, with 388,500 shares traded, for a market capitalisation of RM2.34 billion.

PetGas grew two sen or 0.11% to RM18, with 170,000 shares transacted, for a market capitalisation of RM35.61 billion.

TNB fell 38 sen or 2.43% to RM15.28, with 4.89 million shares done, valuing the company at RM86.76 billion.

Ranhill remained unchanged at 70 sen, with 56,000 shares exchanged, for a market capitalisation of RM621.82 million.

Sapura Energy dipped half sen or 0.65% to 77 sen, with 51.85 million shares traded, valuing it at RM4.61 billion.

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Related Stocks

GAMUDA 5.270
MALAKOF 0.640
PETGAS 17.540
RANHILL 1.080
SAPNRG 0.050
TENAGA 11.240

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