FOREIGN FUNDS EYEING ANZO?
Anzo Holdings Bhd announced that CSTME Resources Sdn Bhd, which has an AP (approved permit) license has emerged as a substantial shareholder in the company with 11.621 per cent stake.
That could explain the reason why the stock has been trading at high volume this month, hitting almost 400 million.
Anzo was the third most actively traded stock on Bursa Malaysia. Some 216.4 million shares were traded.
The stock closed 14.5 sen today, the highest in three years.
Analysts whom we spoke to, and who wished to remain anonymous as they are not authorised to speak, said that the stock has the potential to do better in the coming months, thanks to a RM1.3 billion contract it recently secured with a South Korean group.
“That could be another reason why the stock has been active. Anzo is expected to have guaranteed payment over 40 months, which is the duration of the contract. This will augur well for the company to perform better.
According to Anzo, CSTME has committed to supply a South Korean steel maker with copper scrap, and intends to purchase products from the company to fulfil this commitment.
The analyst also believes that Anzo may attract new shareholders as they look at the potential upside of the company.
The analyst said large funds from China have also been buying Anzo shares.
“Now that Anzo has a big project in hand they are certainly going to attract global fund managers,” he said.
Meanwhile, CSTME, incorporated in 2014, is one of the major importer and exporter of non-ferrous materials in Malaysia which specialized mainly in copper products.
Last week, Anzo Holdings Bhd has entered into a supply agreement with CSTME Resources Sdn Bhd, in which CSTME has agreed to purchase birch/cliff copper scrap or berry/candy copper scrap for a total contract value of RM1.3 billion.
Photo : Copper
Under the agrement, Anzo will supply up to 60,000 metric tonnes of the products to CSTME at RM23,000 per metric tonne for the supply term of 40 months.
CSTME said it will buy the products from Anzo and export them to South Korea, effective July 1.
Anzo said this deal is expected to strengthen its trading business for sustainable earnings in a long period.
The deal will also create business opportunities in the international export market for Anzo, which has been looking to diversify its income stream as its current business that includes property development has not been doing so well because of weak market conditions.