Hot Stock Sumatec rises 7.53% in anticipation of PN17 uplift

by **Cals** Mon 04 Aug 2014, 23:01

Hot Stock Sumatec rises 7.53% in anticipation of PN17 uplift

Business & Markets 2014

Written by Supriya Surendran of theedgemalaysia.com

Monday, 04 August 2014 12:09

KUALA LUMPUR (Aug 4) : Oil and gas firm Sumatec Resources Bhd rose as much as 7.53%, on anticipation of an uplift from its Practice Note 17(PN17) status as well as its planned acquisition of Borneo Oil and Gas Ltd.

At 12.08pm, Sumatec rose 2.5 sen or 5.38% to 49 sen, with some 164.61 million shares done. The stock had earlier risen as much as 3.5 sen to 50 sen.

An analyst from Public Investment Bank said the increase in share price could be attributed to market anticipation that Sumatec would be uplifted from its PN17 status soon.

“Sumatec needs 2 quarters of profits to uplift itself from PN17 status, therefore, the share price increase could be due to anticipation from investors that the company will deliver profitable results for its second quarter ended 30 June 2014 (2QFY14),” said the analyst.

Sumatec CEO Chris Dalton had earlier stated that the company planned to exit from its PN17 status by September.

Another analyst who spoke on condition of anonymity attributed the increase in Sumatec’s share price to its recent planned acquisition of Borneo Oil and Gas , which owns the Karaturun oil fields in Kazakhstan through its wholly-owned subsidiary Buzachi Neft LLP.

“I believe that the increase in share price is due to Sumatec buying into the Kazakhstan assets, however for these kind of stocks it is purely speculative as the company is still in PN17 status,” said the analyst.