KUALA LUMPUR: Shares in Federal International Holdings Bhd (FIHB) climbed in early trade Monday on its plan to venture into the renewable energy sector.
The counter added 4.48%, or three sen to 70 sen, its highest in at least six months at 9.14am. Year-to-date, the counter has risen some 36%.
FIHB’s joint venture unit has inked a memorandum of understanding (MoU) with SPIC Energy Malaysia Bhd to acquire a stake in some operating solar energy assets.
The MoU was inked between Federal International's 50%-owned company Warrants RE Assets Sdn Bhd with SPIC Malaysia to collaborate and acquire in part or whole operating feed-in tariff (FiT), net energy metering (NEM) and large scale solar (LSS) farm.
SPIC Energy Malaysia is the wholly-owned unit of Chinese utility giant SPIC (State Power Investment Corp), which has 126GW of installed generation capacity through its global presence.
Meanwhile, RHB Retail Research said FIHB is poised for a technical breakout after it bounced off the 21-day average line, as it attempted to break past the 67 sen level – coupled with strong volume.
“If a breakout occurs above that level, buying momentum may emerge to propel the stock towards the 52- week high of 72.5 sen, then the resistance point of 80 sen. However, falling below the 60 sen support may trigger a downtrend,” it said.