Hot Stock Sumatec up 3% in anticipation of higher Kazakhstan oil reserves

by **Cals** Wed 29 Jan 2014, 01:59

Hot Stock Sumatec up 3% in anticipation of higher Kazakhstan oil reserves

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Tuesday, 28 January 2014 11:41

KUALA LUMPUR (Jan 28): Sumatec Resources Bhd rose as much as 3% to become Bursa Malaysia's seventh most-active stock. The stock has risen after the firm said it has undertaken initial extraction of crude oil in Kazakhstan.

Sumatec also said it believes there are more hydrocarbon reserves at its Rakushechnoye field than initially estimated. At 11.20am, Sumatec was traded at 30.5 sen with some 14 million shares done.

The stock had earlier risen as much as one sen to 31 sen. Bloomberg data show that Sumatec shares have risen about 13% so far this year, outperforming the FBM KLCI's 4% decline.

In a note today, RHB Research Institute Sdn Bhd technical analyst Mohammad Ashraf Abu Bakar said the firm has technical target prices of between 25 sen and 27 sen for Sumatec shares.

Kenanga Investment Bank Bhd wrote in a note that Sumatec shares' immediate technical support and resistance are seen at 29 sen and 31 sen respectively.

Yesterday, Sumatec said it had undertaken initial extraction of crude oil reserves at its Rakushechnoye field in Kazakhstan since last Saturday.

In a statement to Bursa Malaysia, Sumatec said oil output is estimated at 150 barrels per day at the field.

In a separate statement, Sumatec said it is undertaking an internal review of oil and gas reserves there.

This is in anticipation of more reserves in the Rakushechnoye field than initially estimated.