KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Recommend BUY with target price (TP) of RM0.81 Highlights Backed by sizable orderbook. Pesona’s new job wins have totalled RM1.8bn YTD, the highest achieved. Its orderbook stands at a record RM2.3bn, growing 3-fold within a year. This translates to a 9.6x cover on FY15 construction revenue, the 2nd highest ratio within our sector universe. Reputable clientele base. All of Pesona’s existing jobs are either government related or from listed property developers in Singapore, Malaysia and Thailand. With 75% of its orderbook comprising of newly secured jobs this year, risk of cost overruns is minimal. More to come. Management is comfortable to achieve RM500m in new job wins for FY17. Potential jobs include hospitals (RM220m) and river beautification (RM200m). Given Pesona’s strong track record in building jobs, we view it as a beneficiary of Greater KL’s catalytic developments. Incoming concession. Pesona will soon conclude the acquisition of SEP, ...