Hot Stocks MKH, Deleum surges after announcing bonus issue and share split

by **Cals** Wed 12 Mar 2014, 12:36

Hot Stocks MKH, Deleum surges after announcing bonus issue and share split

Business & Markets 2014

Written by Ho Wah Foon of theedgemalaysia.com

Wednesday, 12 March 2014 11:27

KUALA LUMPUR (Mar 11): Deleum Bhd and MKH Bhd marched to the top gainers list in morning trades after both firms proposed to undertake corporate exercises that involve bonus issue and share split.

“Investors normally react positively to news on bonus issue, share split and takeovers,” said a dealer.

At 11.01 am, Deluem – the top gainer – surged 30 sen or 5.5% to RM5.74 on trades of 432,000 shares. The stock had earlier hit a high of RM5.90.

And MKH Bhd – the third biggest riser – gained 14 sen or 3.4% to RM4.24 on trades of some 1.81 million shares. The stock had earlier risen to RM4.26.

Last night, Deleum Bhd proposed a bonus issue and share split to reward its shareholders and improve trading liquidity while making its shares affordable.

The oil and gas and services announced a one-for-three bonus issue of 50 million new shares and a one-into-two share split, subdividing every one existing share into two shares of 50 sen each.

Group managing director Nan Yusri Nan Rahimy said the exercise was aimed at rewarding its shareholders. This is in addition to the group’s second interim dividend payment of 11 sen per share recently declared.

Deleum’s 2013 full year net profit jumped 11.47% to RM49.55 million from RM44.45, while revenue increased to RM484.68 million from RM473.24 million a year ago.

Separately, MKH Bhd proposed a bonus issue of up to 75.7 million new shares.

The property developer, which has been on the radar of investors lately for several positive news, said the exercise would be undertaken on the basis of one bonus unit for every five shares held.

One recent news that had made the stock exciting lately was a future plan by the property firm to list its oil palm plantation arm.