Japan's move to compile several extra budgets to cope with the earthquake and tsunami disaster gave timber stocks on Bursa Malaysia a shot in the arm.
The stocks were traded in a frenzy, as investors kept chasing them, betting that they will be one of the immediate beneficiaries in the rebuilding of Japan.
Yesterday, Japan's Parliament passed a US$1.1 trillion (RM3.33 trillion) budget, while the first extra budgets are likely to be compiled by the end of April, with some economists saying total disaster-related spending may reach US$100 billion (RM3.03 billion).
On the home front, seven out of 10 of the most actively traded stocks were timber-related, while five of the top 10 gainers of the day also came from this sector.
Leweko Resources Bhd was the most actively traded stock, with some 78.3 million shares exchanging hands, followed by Naim Indah Corp Bhd with 67.5 million shares traded and Seal Inc Bhd with 59.3 million shares traded.
Ta Ann Holdings was among the top five gainers on Bursa Malaysia, inching up 56 sen to close at RM7.05. Ta Ann exports 90 per cent of its plywood production to Japan.
Others in the top five list included Jaya Tiasa Holdings Bhd, which told the stock exchange on Monday that its group level net profit for the nine months ended January 31 2011 surged more than four times to RM92.42 million from 17.59 million in 2010.
Jaya Tiasa closed 44 sen higher to RM3.88, while rival Subur Tiasa Holdings Bhd was up 40 sen to close at RM6.56.
The Sarawak-based timber stocks rose, as investors bet that Japan will buy more timber from Malaysia's largest state.
Japan imports nearly 1.1 million cu m of panel products worth RM1.7 billion representing almost half of Sarawak's total exports of 2.5 million cu m (RM3.43 billion) for the 11 months through November last year. - By Azlan Abu Bakar of btimes.com.my
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