Hot stock Time Engineering jumps 13% on institutional buying

Hot stock Time Engineering jumps 13% on institutional buying
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Tuesday, 02 April 2013 16:29


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KUALA LUMPUR (Apr 2): Investors flocked into TIME ENGINEERING BHD [], helping the stock rise as much as 3.5 sen or 13% to 31 sen before paring gains.

At 4.12pm, Time shares were up by two sen to 29.5 sen with about 15 million shares traded, placing the stock at sixth place on the most-active list.

Remisiers said institutional buyers have been accumulating shares in the loss-making provider of solutions for e-commerce, cyber security and integrated intelligent infrastructure.

SJ Securities senior remisier Goh Kay Chong told theedgemalaysia.com that there was an “institutional buying” of Time shares a couple of weeks ago.

“According to my chart, there was an institutional buying of Time shares on March 21, where it bought a bulk of shares,” Goh said.

Bloomberg data shows that Time saw 24.5 million shares traded on that day. The stock had closed at 31 sen then.

Institutional buying of Time shares comes at a time when the market has been anticipating that its major shareholder Khazanah Nasional Bhd is planning to sell its stake in the firm.

According to news reports, Khazanah has shortlisted three bidders to acquire its 45% stake in Time. It was reported that Censof Holdings Bhd is one of the three shorlisted bidders, with the winner likely to be announced later this month.

Time's financials have weakened. In its financial year ended December 31, 2012 (FY12), it made a net loss of RM7.78 million on revenue of RM144.59 million. In FY11, the firm chalked up a net profit of RM87.49 million on revenue of RM65.34 million.

Time said its weaker bottomline in FY12 was affected by the one-off provision for claim made by a subsidiary’s sub-contractor of RM4.5 million and higher depreciation charges on its investment in the integrated enterprise centre at Cyberjaya.