Friday, October 7, 2011

MBSB extends gains ahead of Budget 2012

KUALA LUMPUR: MALAYSIA BUILDING SOCIETY BHD [] (MBSB) shares continued to be traded actively on Friday, Oct 7, ahead of the tabling of Budget 2012 later in the day, on expectations that the Budget would provide for civil servants' wage adjustment.

At 9.15am, MBSB shares rose seven sen to RM1.54 with 8.99 million shares done while its warrants gained two sen to 64.5 sen with 13.5 million units done.

OSK Research in a note Oct 7 said MBSB rallied by a strong 14% yesterday on rumors of a potential salary hike for civil servants when today's Budget 2012 is tabled.

The research house said the company would likely benefit from the civil servants' wage adjustment given that it is one of the few players in the niche civil servants personal loan space.

'On top of this, the launch of its Islamic credit card targeting civil servants will possibly bring in more non-interest income given the higher disposable incomes post potential salary hike.

'Maintain BUY with an unchanged fair value at RM2.35,' it said.

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