Friday, September 30, 2011

OSK Holdings at highest since April on merger plan

KUALA LUMPUR: Shares of OSK HOLDINGS BHD [] climbed to the highest since April 26 this year, hitting an intra morning high of RM1.77 after it announced plans for a merger with RHB CAPITAL BHD [].

At 10.10am, OSK was up 25 sen to RM1.64 with 10.81 million shares done. RHB Capital rose nine sen to RM7.25 with 968,900 shares done.

The FBM KLCI surged 14.74 points to 1,402.20. Turnover was 314.36 million shares valued at RM301 million. Gainers led losers 367 to 96 while 155 counters were unchanged.

MIDF Research maintained its buy call on RHB Capital with a target price of RM9.35. It said the valuation remained undemanding at PER of 12.3 times to its PS forecast of 76 sen and PBV of 1.62 times to its projected book value for FY12.

'We retain our BUY recommendation on the stock. As it is merger talk is still in preliminary stages with not much details available, we make no adjustments to our forecast at this juncture,' it said.

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