Free Website Counters
Free Website Counters SPY the Man: Proton extends gains on VW prospects

Sunday, November 12, 2006

Proton extends gains on VW prospects

Proton Holdings Bhd’s share price continued to rise in early trade on Nov 10, as investors were upbeat about the prospects of Volkswagen AG (VW) entry into the national carmaker’s manufacturing operations.

It opened at RM5.60, up 10 sen. Within the first hour of trade, there were 321,900 shares done at prices ranging from RM5.60 to RM5.70. At 10am, it was trading at RM5.65, up 15 sen or 2.7%.

The call warrants jumped as much as 28.7% or 12.5 sen to 56 sen. It opened at 45 sen, up 1.5 sen. Within the first 60 minutes of trade, there were 2.13 million units done at prices ranging from 45 sen to 56 sen.

At 10am, it was trading at 54.5 sen, up 11 sen or 25.3%.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said on Nov 9 that the government is considering giving approval for the German carmaker to take up a 51% controlling stake in Proton Holdings Bhd's manufacturing operations.

OSK Investment Research said the move would provide access to world class R&D, especially for developing lower-cost large-volume cars

“In the VW stable, the technological strength is quite impressive, namely Audi and its sports division Quattro Gmbh, Lamborghini and Bugatti, and not to mention that Porsche is a major shareholder of VW.

“We do not doubt that some of this may not filter down to Proton but it good to know that the possibility is there. This is where VW makes a more compelling choice as Proton’s partner and we share the same sentiment with PSA Peugeot Citroen,” it said.

OSK Research said that there could be joint development of new products, which was the cheaper means of producing cars or components.

“Proton would certainly benefit from this as a mean of expanding its product range since these established car makers have a more complete range of vehicles, from a small car to large MPVs and SUVs,” it added.


Post a Comment

<< Home

What is the main factor for you to buy a Proton Car?
Low price and no other choice due to budget
Good resale value
Low maintenance cost
Ride & Handling is good
Reliable parts, chasis and engine
Good Styling exterior & Interior
Patriotism (I support Made in Malaysia Products)
Follow others (Follow Majorities should be the best choice)