Water Players

Many punters have been wondering why after construction stocks moved strongly, water pipe players also moved in anticipation of benefits under the 9MP, but till now none of the water concessionaires have seen any appreciable rally in their stock prices (mild rally for PUNCAK).

I think the effects of the 9MP proposals on players like RUBHD, TALIWRK & PUNCAK are still unclear at the moment. Perhaps the following column which came out today on www.osk188.com can offer some behind-the-scenes insight as to their relative share price under-performance.

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Water players upset over proposed bills
Water players are concerned over the tabling of two water bills in Parliament next month, arguing that the bills, if passed, would see their contracts renegotiated and that would jeopardise their financial position. The two bills are - the Water Services Industry Bill and the National Water Services Commission Bill. The effects of the bills would see the control of water resources, previously the domain of states in the peninsular, transferred to the Federal Government. (Star)