KUALA LUMPUR (June 20): Felda Global Ventures Holdings Bhd (FGV) shares rose as much as seven sen or 5% after Barisan Nasional (BN) won the Sungai Besar and Kuala Kangsar by-elections last Saturday.
Today, FGV shares rose to their highest so far at RM1.59. At 3:21 p.m., the fifth most-active stock on Bursa Malaysia pared gains at RM1.58, with some 24 million shares traded.
At RM1.58, FGV had a market value of RM5.77 billion.
Bloomberg reported today that the BN win indicates the importance of rural voters in Malaysia’s electoral map.
“Settlers under Malaysia’s Federal Land Development Authority — a government agency known as Felda formed in 1956 with World Bank funding, to help steer the rural poor out of poverty by providing them with land to plant — are backbone voters in over 50 districts, according to the Merdeka Centre for Opinion Research,” Bloomberg reported.
Remisiers agree with this viewpoint. A remisier told theedgemarkets.com that FGV shares might have gained on investors' confidence in the stock, following BN's
“The surge in FGV shares today may be due to BN’s win in the by-elections, which could have boosted investor confidence in the stock since FGV is controlled by government agency Felda,” the remisier said.
FGV (5222) - Hot Stock: Felda Global up 5% after BN by-election win