Hot Stock Daya rises actively possibly after news a foreign fund buys 1.3% stake

by **Cals** Wed 15 Jan 2014, 23:10

Hot Stock Daya rises actively possibly after news a foreign fund buys 1.3% stake

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Wednesday, 15 January 2014 14:47

KUALA LUMPUR (Jan 15): Daya Materials Bhd shares turned actively higher today after a local newspaper reported today that a Norwegian fund had acquired a 1.3% stake in company.

The company’s share rose 2.5 sen or 6% to 43 sen a share with 79,146,900 shares done at noon break.

According to the news report, Norges — a Norweign sovereign wealth fund — has taken up some 18 million shares of the company at 34.5 sen. With that, Norges now effectively owns 1.3% of Daya.

But a check with Bursa Malaysia’s website shows that Daya has not made such announcement to the stock exchange yet.

Daya, which is on the trading picks of SJ Securities today, is seen on up trend with immediate support at 31 sen and an initial target price of 45 sen and a subsequent target price of 50 sen.

The SJ technical report reads: “Daya, rebounded to close higher after hitting intra-day low of 0.385, formed a bullish white candlestick. Long term trend is up.”

An analyst from RHB Research told theedgemalaysia.com that “institutional shareholdings were building up in Daya and the Norwegian fund investments clearly points to solidifying confidence in the stock.”

“We think that the company is well run as it is one of the first Malaysian sub-sea services company to be in the North-Sea,” she said.

In an earlier report, Public Investment Bank said Daya is entering into an exciting phase with current contracts on hand and potential contracts.

“The group has tendered for about RM1 billion to RM1.5 billion worth of new contracts under the subsea engineering segment. We do believe Daya has the capacity to grow, buoyed by better oil & gas sector growth outlook going forward” said the research house.