Hot Stocks Water stocks up on news of signing of supplementary agreement

by **Cals** Fri 10 Jul 2015, 17:55

Hot Stocks
Water stocks up on news of signing of supplementary agreement

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By Cynthia Blemin / theedgemarkets.com | July 10, 2015 : 12:10 PM MYT

KUALA LUMPUR (July 10): The shares of water concessionaire and pipe related counters saw a significant speculative buying on news that the federal and Selangor state governments are to sign a supplementary agreement this afternoon.

The excitement surrounded the news that the signing ceremony of a supplementary agreement can be seen as a positive step towards effectively ending the Selangor water impasse that has dragged on for the last eight years.

Shares of [size=14]Kumpulan Perangsang Selangor Bhd (Perangsang Selangor) jumped as high as 5.75% or 8 sen during morning trade to hit RM1.47. Perangsang Selangor holds strategic stakes in major water supply and water related companies namely, Konsortium ABASS Sdn Bhd (ABASS).

At 11.32am, shares of water concessionaire Puncak Niaga Holdings Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) was up 4.18% or 11 sen at RM2.74,w ith 1.72 million shares done.

Pipemakers JAKS Resources Bhd and Engtex Group Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) also rose in anticipation. Shares of JAKS and Engtex rose to as high as 80 sen and RM1.21 respectively, during morning trades.

At 11.36am, shares of JAKS was up 4 sen or 5.3% at 79.5 sen, with 5.93 million shares traded.

According to theedgemarkets.com, the federal and Selangor state governments are expected to sign a supplementary agreement this afternoon, effectively ending the Selangor water impasse.

The website quoting sources close to the matter, said the event is to be witnessed by Deputy Prime Minister Tan Sri Muhyiddin Yassin. Muhyiddin is also the chairman of the Special Cabinet Committee on Selangor Water Issues.

One source said that Selangor Menteri Besar Mohamed Azmin Ali and Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili are expected to attend the signing ceremony. The event that will also be attended by the Selangor exco will be held at Muhyiddin's office in Putrajaya this afternoon, the source added.

This also confirms a report published by The Edge Financial Daily on June 25, that a supplementary agreement will be signed by both, the federal and state governments.

According to the report, the signing of the supplementary agreement will see the state maintaining ownership of its water assets and Putrajay proceeding with the long-delayed development of the Langat 2 water treatment plant project.

The report quoting a source said that the federal government has conceded most of the key points of contention by Azmin in the master agreement that have stalled efforts to finalise the state's water restructuring.
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