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
by-election win.
“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
http://www.theedgemarkets.com/my/article/felda-global-5-after-bn-election-win
