Monday, September 12, 2011

DiGi falls on news service charge may be put off, weak sentiment

KUALA LUMPUR: Shares of DIGI.COM BHD [] fell the most among the telcos in the afternoon session on Monday, Sept 12, on news the government would advice them to put off the 6% service tax on prepaid mobile phone users effective Sept 15.

At 3.22pm, DiGi fell 34 sen to RM31.66 with 376,100 shares done. DiGi is deemed to be more affected by the service charge as most of the subscribers are pre-paid users.

The fall in the share price was also in line with the weak market sentiment and also that its share price had run up following its capital distribution plan last week.

The corporate exercise would see it potentially unlocking RM692 million (RM0.89/share), on top of the RM509 million (RM0.65/share) capital distribution that is being proposed.'' DiGi also announced a 1-for-10 share split.

However, the authorities are against the move and even the Prime Minister Datuk Seri Najib Tun Razak was not happy with the imposition of the charges.

Maxis shed five sen to RM5.36 and Axiata one sen to RM4.78.

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