MARKET TALK: Ornasteel May Test MYR1.53 High; 1Q pft +11X

Ornasteel (5094.KU) likely to test recent high of MYR1.53; reports sharp on-year jump in 1Q net profit to MYR22.7 million from MYR1.82 million year earlier. Better-than-expected 1Q results due to higher selling prices, higher sales volume of steel products. Expects to fare well in rest of year on increased production capacity, favorable market condition. "Investors may chase up the stock in knee-jerk reaction to its stellar set of results. Expectations of higher earnings on the back of firming steel prices may help support share price gains," dealer says. Stock closed down 2% at MYR1.48 yesterday.