FGV shares up for the second day

PETALING JAYA: Shares in Felda Global Ventures Holdings Bhd (FGV) climbed for a second day in a row in busy trade, as investors shrugged off concerns about a widening probe at the planter by the antigraft commission over alleged corruption and abuse of power by its high-ranking officials.

Dealers said some investors were buying ahead of a meeting between FGV’s biggest shareholder, the Federal Land Development Authority (Felda) led by its chairman Tan Sri Shahrir Abdul Samad, and Prime Minister Datuk Seri Najib Tun Razak, which is scheduled for today.

Najib said over the weekend that the government was working closely with Felda to resolve the problems at FGV as quickly as possible.

Meanwhile, Shahrir was quoted on Sunday as saying that all parties “have about a week” to come up with a solution for FGV before the fasting month is over in ten days.

He did not discount the possibility of a management shake-up at the embattled planter.

Shares in FGV added seven sen, or 4.2%, yesterday to close at RM1.73 after trading resumed following an extended weekend.

A total of 48.6 million shares in FGV changed hands in what had been the counter’s third-busiest trading day this month.

Despite the recent price surge, shares in FGV remained about 19% lower from where they were a month ago.

The stock went on a roller-coaster ride last week after the suspension of its group president and chief executive officer Datuk Zakaria Arshad and three other top executives by the board of directors led by chairman Tan Sri Mohd Isa Abdul Samad.

Zakaria hit back, claiming he was a “victim of circumstances” and called for a probe into the company’s dealings.

The Malaysian Anti-Corruption Commission or MACC last week said it had begun investigations on the company.

While sentiment on FGV is on the mend, equity analysts, however, are less sanguine in their immediate outlook on the stock.