Hot Stock Sona share, warrant rise on RH Petrogas buy rumour

Hot Stock Sona share, warrant rise on RH Petrogas buy rumour
Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Friday, 27 September 2013 10:06

KUALA LUMPUR (Sept 27): Sona Petroleum Bhd shares and warrants rose as much as 5% and 7% respectively among Bursa Malaysia's most-active entities.

This came on news that Sona, a special-purpose acquisition company, may acquire a stake in Singapore-listed RH Petrogas Ltd. It was also reported that Sona may purchase RH Petrogas’ offshore oil and gas (O&G) assets.

At 9.44am, Sona shares were traded at 44.5 sen with some 18 million units done.The fifth most- active entity had earlier risen as much as two sen to 45.5 sen.

Its warrant, the most-active entity, changed hands at 29 sen at 9.45am with about 65 million units traded. Sona warrants had earlier gained as much as two sen to 29.5 sen.

RHB Research Institute Sdn Bhd technical analyst Mohammad Ashraf Abu Bakar said the firm has a technical target price of between 46 sen and 50 sen for Sona shares.

"Buy above MYR0.40 on possible bottom at MYR0.39," Mohammad Ashraf wrote in a note today.

Meanwhile, Kenanga Investment Bank Bhd said in a note today the immediate support and resistance for Sona shares are seen at 41 sen and 44 sen respectively.

RH Petrogas has upstream O&G assets across Asia. According to the firm's website, the company owns hydrocarbon fields in China, Indonesia and Malaysia.

In China, RH Petrogas has a production sharing contract (PSC) with China National Petroleum Corp. The PSC is for the Fuyu 1 block within the Songliao basin in Jilin province.

Nearer to home, RH Petrogas' Indonesian assets comprise the West Belida block in Sumatra, besides onshore and marine fields in West Papua.

In Malaysia,RH Petrogas has a PSC with Petronas Carigali Sdn Bhd to extract O&G from Sarawak's onshore block SK331.