PETALING JAYA: Market laggard Kumpulan Fima Bhd (Kump Fima) saw heavier than usual trading yesterday.
The normally subdued stock recorded a turnover of 30.4 million shares, with just 1.4 million shares transacted a day earlier.
The surge in volume lifted Kump Fima's share price 18.5 sen, or 26% higher, to a seven-year high of 91 sen.
“Some stocks perceived to be closely linked to the government are attracting strong speculative interest ahead of the general election,'' a dealer said.
Kump Fima is one of three companies selected to lease biodiesel plants built by the Malaysia Palm Oil Board. The plants are expected to operational this year.
While the stock is hardly featured by research analysts, its decent set of results warrants a second look by investors shopping for cheap exposure to a rising market.
For the year ended March 31, (FY07) Kump Fima registered a net profit of RM29.66mil, or 11.27 sen per share.
The results were slightly lower compared with the same period last year, although the lack of coverage means valuations will remain depressed at single-digit multiples.
It is worth noting that the group has remained profitable the past five years. The numbers, however, have been on the decline since FY04.
Kump Fima has announced a number of corporate proposals over the past few days.
Earlier this week, the company said it was expanding its bulking services via the acquisition of Boustead Oil Bulking Sdn Bhd for RM6.97mil.
It has also entered into an agreement to swap its piece of agricultural land in Temenggor, Perak, in exchange for 14 office units at PJ Trade Centre, Bandar Damansara Perdana, Petaling Jaya in a deal worth RM15.8mil.
Kump Fima's 60%-owned unit, FIMA Corp Bhd, gained 10 sen, or 4.4%, to RM2.36 yesterday on volume of 236,700 shares.
Fima Corp, which prints and supplies security documents to the government, registered a net profit of RM27.6mil, or 34 sen per share, in the financial year ended March 31.