Hot Stock Salcon rises 2.7%, co seen as front runner for RM4.1b Langat water project

by **Cals** Thu 10 Apr 2014, 13:41

Hot Stock Salcon rises 2.7%, co seen as front runner for RM4.1b Langat water project

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Thursday, 10 April 2014 11:16

KUALA LUMPUR (Apr 10): Salcon Bhd rose as much as 2.7% as the water engineering firm is seen as one of the front runners for the RM4.1 billion Langat 2 water treatment plant project.

At 10.34am today, Salcon gained as much as two sen to 77 sen. The seventh most-active counter saw trades of some 18 million shares.

Salcon is part of a consortium which is seen as a potential winner of the project. Industry sources speculated that the consortium which includes conglomerate MMC Corp Bhd and builder Ahmad Zaki Resources Bhd (AZRB) is the front runner for the project.

Energy, Green Technology and Water Deputy Minister Datuk Seri Mahdzir Khalid told The Edge Financial Daily the award of the long-delayed Langat 2 project would be announced soon.

Meanwhile, Salcon’s warrant also rose. The warrant jumped 1.5 sen or 30% to 6.5 sen.

The eighth most-active counter saw some 17 million units exchanged hands.

Inter-Pacific Securities remisier Sam Ng told theedgemalaysia.com that Salcon’s active movement today was due to the Selangor water factor.

“We see the Selangor water issue may push the share up further. There is more upside potential.

“The firm also possesses solid fundamentals. Big funds may be attracted to accumulate the share,” he said over telephone.

A dealer familiar with the stock said Salcon was riding on positive news flow from the Langat 2 project.

“We see Salcon’s share price moving upwards, with AZRB also gaining in tandem. MMC, surprisingly, remains unchanged,” the dealer said.