Scomi shares up following Quek's entry

KUALA LUMPUR: Shares of Scomi Energy Services rose at mid-morning on Monday after Tan Sri Quek Leng Chan made a big entry into the group, which would make him the second largest shareholder with 11.5% stake.

At 10.24am, Scomi Energy jumped 12.5 sen with some 21.96 million shares heavily traded between the prices of RM1.04 and RM1.14.

The FBM KLCI rose 9.82 points to 1,829.19. Turnover was 1.08 billion shares valued at RM519.93mil. There were 382 gainers, 176 decliners and 298 counters unchanged.

Hong Leong Investment Research has maintained its Buy rating on Scomi Energy with a target price of RM1.02, saying that it is positive on the entry of new strategic investor given it will remove the share overhang concern. “We view Quek’s entry into Scomi Energy at a right and exciting timing given the group’s potential RSC win and the vastly untapped WMS market,” it said.