Hot Stocks CMSB, Naim, Dayang fall after speculative reports Sarawak CM may retire

Hot Stocks CMSB, Naim, Dayang fall after speculative reports Sarawak CM may retire
Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com
Wednesday, 05 February 2014 17:37

KUALA LUMPUR (Feb 5): Counters linked to the family of Sarawak Chief Minister Tan Sri Abdul Taib Mahmud fell today after speculative news reports that this longest serving chief minister would retire soon.

National news agency came out with a speculative report today, following a similar report by a leading Chinese newspaper yesterday.

At market close, CMSB fell 19 sen or 2.6% to end at RM7.24, Naim Holdings Bhd lost 2 sen or 0.6% to RM3.50 while Dayang Enterprise Holdings Bhd surrendered 7 sen or 2% to close at RM3.60.

CMSB was the second largest loser across the exchange.

All these counters, which had been the beneficiaries of state government contracts in the past, had seen their share prices doubled in 2013.

“After the Bernama news, some investors thought it might be better to unload these stocks now as they believe that after Taib steps down, many contracts may not be given to these companies,” said a senior dealer.

“People who had bought the stocks earlier are taking profits after the news,” said another dealer.

The powerful Taib, 77, who has been holding the chief minister's post for 33 years, is scheduled to meet all members of the Parti Pesaka Bumiputera Bersatu (PBB) Supreme Council on Saturday (Feb 8) and all the elected state Barisan Nasional (BN) MPs and state assemblymen on Sunday (Feb 9), Bernama reported.

A party insider told Bernama, Taib is expected to use the meeting to make some "important announcement" and would leave it to the party's decision-making body to decide on how it should be carried out.

Speculation that Taib is preparing to make way for a new leader has become more intense since December last year, after 92-year old Tun Abang Muhammad Salahuddin Abang Barieng’s tenure as head of state was extended only until Feb 28.

Speculation was also rife that Taib would assume responsibility as the new head of state after that.

In April 2011, Taib announced that he would retire in "two or three" years time, and that he might leave "mid-term", without mentioning any specific dates.

Taib, who is also the state BN chairman, on several occassions has said he had already prepared and groomed an able leader to lead PBB and the state.

PBB, the backbone of the Sarawak state government, is currently the second strongest party among the BN components after UMNO.

cmsb-cb, dayang-cf still holding ... will monitor closely