Engtex rises 9% in anticipation of Selangor water deal inked today

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KUALA LUMPUR (Sept 12): Pipe manufacturer Engtex Group Bhd rose as much as 9% in anticipation of the Selangor water sector restructuring deal being inked today.

Last Wednesday, Deputy Energy, Green Technology and Water Minister Datuk Seri Mahdzir Khalid had said the federal government expect to seal the final agreement to restructure the water industry in Selangor with the state government today.

At 11.19 am today, Engtex gained 14 sen or 7.5% to RM2.00. The sixth top gainer saw trades of some 2.1 million shares. It had earlier hit a high of RM2.03.

A fund manager told theedgemalaysia.com that Engtex’s rise could be due to the expected signing of the water sector restructuring deal today.

“There is a possibility that Engtex will benefit from the deal,” he said over the telephone.

Sam Ng, Interpacific Securities’ senior remisier, said stocks related to the water sector had been on rotational play.

He noted Engtex and Salcon Bhd were on the rise today, adding that Jaks Resources Bhd and Kumpulan Perangsang Selangor Bhd (KPS) also rose yesterday.

Today, Salcon nudged up 1 sen or 1.2% to 86.5 sen on a volume of some 2.2 million shares.

However, Jaks slid 1 sen or 1.3% to 77.5 sen on 1.2 million shares done. KPS also shed 2 sen or 1% to RM1.89 with 370,400 shares done.

Gamuda traded unchanged at RM4.83 on some 2.1 million shares traded.

Except for Syarikat Pengeluar Air Sungai Selangor Sdn Bhd, which is 30% owned by KPS, the three other concessionaires that have agreed to Selangor’s takeover offer are Puncak Niaga and its 70%-owned subsidiary Syabas and Konsortium Abass.