Monday, February 21, 2011

HWGB falls on profit taking after recent run-up on tin mining ops

KUALA LUMPUR: The securities of HO WAH GENTING BHD [] [] (HWGB) fell in active trade in late afternoon of Monday, Feb 21 as investors and traders took profit after the recent run-up on its tin mining operations.

At 3.36pm, HWGB was down 7.5 sen to 72 sen with 43 million shares done. HWGB-WB fell 11.5 sen to 60 sen with 33.12 million units done.

However, the FBM KLCI was up 8.88 points to 1,526.44. There were 245 gainers, 575 losers and 253 stocks unchanged.

The shares had surged in early February to a high of 89.5 sen after it announced it expected its tin ore mining business to record a compounded annual growth rate (CAGR) of 20% in output over the next three years.

To recap, HWGB said on Feb 2 its subsidiary HWG Tin Mining Sdn Bhd's foray into the tin mining business would enable it to derive an additional source of revenue for financial year ending Dec 31, 2011. This was in addition to its existing wire and cable business.

HWGB added it was targeting to start the tin mining operations in Pengkalan Hulu after the Chinese New Year holidays.

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