Hot Stock Eco World soars to 16-year high

by **Cals** Mon 06 Jan 2014, 15:23

Hot Stock Eco World soars to 16-year high

Business & Markets 2013

Written by Chong Jin Hun of theedgemalaysia.com

Monday, 06 January 2014 14:20

KUALA LUMPUR (Jan 6): Eco World Development Group Bhd rose to its higest in about 16 years, possibly on the Johor-based real estate developer's proposed dividend, dealers say.

A dealer said the rise in Eco World shares could also be due to its new major shareholders and board members who are linked to S P Setia Bhd president and chief executive officer Tan Sri Liew Kee Sin.

"It could be due to both factors. Eco World shares are on a technical uptrend," the dealer told theedgemalaysia.com over telephone today.

At 12.30pm, Eco World shares settled at RM4.84 with some 3.1 million shares done. The stock had earlier risen as much as 10% to RM4.85.

This is the stocks's highest price since October 1997, Bloomberg data show.

Today, Bursa Malaysia has queried Eco World on the sharp rise in the price and volume of its shares. Eco World had not responded to the query at the time of writing.

Eco World plans to pay a first and final tax-exempt dividend of 1% for financial year ended September 30, 2013. This translates into one sen a share based on the stock's par value of RM1.

Kenanga Investment Bank Bhd wrote in a note today that Eco World shares' immediate support and resistance are seen at RM4 and RM4.42 respectively.

Recent news reports have also indicated that Eco World may be a stock to watch this year. This is anticipation of an asset injection into the company.

Eco World, formerly known as Focal Aims Holdings Bhd, made news last year when Eco World Development Holdings Sdn Bhd and Liew Tian Xiong bought a controlling 65.05% stake in the firm for RM230.69 million or RM1.40 share cash. Tian Xiong is Kee Sin’s son.

The buyers were obliged to extend a mandatory general offer to holders of the remaining shares in Eco World for RM1.40 a share.

Kenanga which was also the independent adviser for the exercise, however said in a shareholder circular that the offer price was "not fair and not reasonable".

Kenanga had subequently recommended minority shareholders to reject the offer.

According to Eco World, the acquirers had secured acceptance for only 15,000 shares of the remaining 88.54 million shares or 34.95% they had planned to buy.

The offer closed on November 12 last year.