Hot Stock Astral Supreme falls 7% despite winning RM105m Melaka housing projects

by **Cals** Wed 12 Mar 2014, 20:33

Hot Stock Astral Supreme falls 7% despite winning RM105m Melaka housing projects

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Wednesday, 12 March 2014 14:50

KUALA LUMPUR (Mar 12): Astral Supreme Bhd fell as much as 7% despite having secured two-subcontracts worth RM105 million involving housing design and construction in Melaka.

At 2.38 pm today, the firm fell 1 sen or 4.8% to 20 sen. The most active counter saw some 60 million shares exchanged hands.

Yesterday, Astral Supreme said its wholly-owned subsidiary Astral Supreme Construction Sdn Bhd (ASC) had received the letters of award (LOAs) for the projects from Gemawan Bina Sdn Bhd and Permata Rebana Sdn Bhd.

“These projects are expected to contribute positively to the future consolidated earnings and enhance the net assets of the group for the financial years ending Dec 31, 2014 and Dec 31, 2015,” said the firm.

Astral Supreme said the projects commenced yesterday and were scheduled for completion by Mar 10, 2016.

Kenanga Research in a note today said the firm would see immediate technical support and resistance levels at 21 sen and 22 sen respectively.

Meanwhile, The Edge reported the firm had last week made ‘comical announcements’ pertaining to the resignation of some of its directors and the appointment of their replacements.

One of the people who were said to have resigned was executive director Cherng Chin Guan, who until end-February was a substantial shareholder of Astral Supreme. However, he did not leave the company.

Astral Supreme, in its defence, said the announcement of Cherng’s resignation was “erroneously” and “inadvertently” released and apologised “for any confusion or inconvenience caused”.

It has asked that the announcement be “ignored and discarded”.